The England international is said to be a potential target for both Newcastle and Sunderland as Tottenham Hotspur boss Mauricio Pochettino plans to get rid of some dead weight.
Newcastle want the 23 year old winger on loan until the end of the season though Spurs are also willing to sell him permanently for around £7 million.
Since making his senior debut for Tottenham back in 2009, Townsend has made 37 appearances scoring just two goals and has been sent out on loan to nine different clubs.