The Spanish duo both joined Liverpool in 2007 and spent two years together, but came to blows when they were reunited on Sunday.
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For nearly two years, Torres has been the head coach of Atletico Madrid's 'Juvenil' side, the Spanish club's under-19s team.
Arbeloa is in the same position at rivals Real Madrid, having worked his way up at the club as a coach from U14 level.
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The two sides came face to face on Sunday afternoon for a Madrid derby in the youth Champions Cup quarter-finals and tensions were clearly high on the touchline.
In a video posted by journalist Jorge Bergatinos on Twitter, they could both be seen arguing on the side of the pitch, with Madrid coaching staff watching on close by.
Torres then pushed Arbeloa away before walking off, with one of the match officials standing right next to them.
As reported by Spanish outlet Relevo, Torres said: "I'll blow your head off", and Arbeloa replied: "Start whenever you want."
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Atletico were about to kick-off but play was halted, with shouting continuing amongst other coaches before the Arbeola was shown a yellow card, and Torres was sent off.
Substitute players from the Atletico bench spilled onto the pitch, with the referee handing out further bookings.
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The feisty encounter ended in a 2-2 draw and a 4-2 aggregate win for Real Madrid, with both sides clearly maintaining rival status at all levels.
In what was his penultimate appearance for Liverpool, Arbeloa once shoved Jamie Carragher during a heated on-pitch confrontation at West Brom in May 2009.
Torres and Arbeloa were hugely successful for both club and country when they shared the pitch together.
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On 94 different occasions with Liverpool and Spain, they won 62 matches in all competitions, losing just ten times.
However, even though they had a good partnership as players, love was lost between the two as they embark on their managerial chapters.