The Newcastle star was linked to Liverpool and Manchester City on Tuesday.
The winger was the Magpies' star man under manager Rafa Benitez at the end of last season as they mounted a late but unsuccessful bid to avoid relegation from the Premier League.
Those performances did not go unnoticed by their Premier League rivals, with several reportedly interested in Townsend's signature this summer.
Today saw a report from the Telegraph that Liverpool and Manchester City have also joined the race for him. All of those clubs are reportedly keen as the player is available for a bargain £10.5million, courtesy of a release clause in his contract.
However, according to the Chronicle, the Magpies are confident of keeping their star man despite the widespread rumours about an exit.
They believe that Townsend is happy to continue working with Benitez in the Championship next season. The Spaniard has talked with several of Newcastle’s stars and is particularly happy with the feedback he has received from Townsend about his future.