The England international has been made available by Spurs, after failing out of contention at White Hart Lane.
Townsend has not made a Premier League start all season, and he has been playing for the Lilywhites’ under-21 side in recent weeks.
Townsend has not made a competitive appearance for Spurs since October 21st, with Mauricio Pochettino clearly having reservations over playing the wide-man.
Tottenham are understood to be keen to offload the 24-year-old at the next available opportunity, and he is said to be at the top of Steve McClaren’s wishlist.
Newcastle have made a poor start to the season, and currently sit in the Premier League’s relegation zone, and McClaren realises that he needs to add quality to his squad in the new year.
The Magpies have struggled in attacking sense so far this season, but Townsend has the ability to increase the service the strikers at St. James’ Park receive.
Townsend is said to be very interested in a move to Newcastle, by the London Evening Standard, making the transfer look a very possible one in the next month.