Torres will miss a match Rafael Benitez's troops dare not lose if they are to retain a realistic chances of reaching the last 16.
The Spain hitman missed Saturday's defeat at Sunderland with a groin injury, and did not train on Monday at Liverpool's Melwood complex.
Reds skipper Gerrard, who also missed the 1-0 defeat at the Stadium of Light, did train and will take his place against the French side.
Benitez said: "Gerrard is now fine, he has trained normally today and will play against Lyon.
"But Fernando is not close enough to fitness to be considered. He will miss this one but I hope he will be OK to play against Manchester United next weekend."
Liverpool also have other injury problems for the match, which Benitez declined to reveal.
But he does expect midfielder Javier Mascherano to start the match, having played only as a late substitute at Sunderland.
Mascherano had arrived back late from Argentina's midweek international, and was not considered ready to play the full match.
His international team-mate Emiliano Insua, who won his first cap in the match against Uruguay, was an unused substitute in the North-East, but should return to the starting line-up against the French league leaders.