Newcastle have been chasing Townsend for much of the summer so far, but are waiting for Matt Ritchie to depart before stepping up their interest.
Stoke City are the leading suitors for Ritchie, and they now have an increased need to go out and sign a winger.
Stoke are set to lose Xherdan Shaqiri to Liverpool in the near future, and they are set to step up their chase for Ritchie in turn.
The Shields Gazette suggest that will then spark Newcastle to take action over Townsend, as the transfer window steps up.
Rafael Benitez has been keen to bring Townsend back to St. James’ Park for some time, as he is a big fan of the Palace winger.