The former Liverpool and Chelsea man has scored in his last two games for Atletico Madrid and Simeone believes a new 'demanding' approach is getting the most out of the 31-year-old.
The Spanish side spent big on attacking talent over the summer, bringing in Jackson Martinez and Luciano Vietto.
However, Simeone admits Torres' strong start is giving him a selection headache and provides the club with viable 'alternatives in attack'.
He told reporters: "Torres is doing well. He came to pre-season very prepared and is doing important work.
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Fernando Torres has earned praise for his goal-scoring start to the season
"You have to be more demanding with him and we are more demanding according to a player's level.
"Last year he gave a lot. He is competing very well and giving us alternatives in attack and that is what we need."
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