The winger appears to be on his way out of White Hart Lane.
The England international has struggled to get in the first-team under Mauricio Pochettino despite he has impressed in England colours.
He appeared to have a bust-up with the Tottenham fitness coach this week after the game with Aston Villa, in which youngster Joshua Onomah was called off the bench instead of the talented winger.
So where should he go?
Perhaps Everton should perform a similar move to the one they did last January to bring in Aaron Lennon.
Everton brought him in on loan and he performed well for the club, eventually leading to a permanent deal this summer.
The Toffees could do with a left-footed option in their attack. At the moment they have none and Aiden McGeady is increasingly appearing to be permanently on the fringes.
Townsend would offer Everton some genuine width over the likes of Kevin Mirallas, Steven Naismith and Arouna Kone - who drift in rather than stick with width.
Townsend may not be wanted at Tottenham but he would be a great addition to the Everton team in their bid for European football.