Townsend, 24, has come up through the ranks with Spurs, and whilst he has had his bright moments in the Tottenham first team, he has struggled for first-team football under Mauricio Pochettino.
The England international - who has actually impressed regularly for the Three Lions - is now behind the likes of Erik Lamela, Son Heung-min, Nacer Chadli and possibly even Clinton N'Jie in the pecking order out wide, and given that Townsend still harbours ambitions of playing for England at Euro 2016, a move away from White Hart Lane may be the best move for all.
The Sun report that Spurs are therefore willing to let Townsend leave the club on loan until the end of the season once the January transfer window opens, with Newcastle United and Swansea City both believed to be interest.
Townsend's pace out wide would be a welcome addition for Newcastle, and even if it's only a loan deal, Steve McClaren could make a smart swoop by landing Townsend.
Meanwhile, the same report also states that Tottenham are lining up a potential replacement for Townsend, with Pochettino ready to move for Crystal Palace star Yannick Bolasie.
The 26-year-old DR Congo international was simply sensational last term, dazzling defences with his pace and power down the flanks for the Eagles.
This season, Bolasie hasn't quite had the same success, but he could certainly bring some more pace to the Tottenham attack - if Palace are even willing to sell their wing wizard.