Stoke City have reportedly offered £19.6 million for Manolo Gabbiadini, a fee that would break their transfer record, but it has been turned down by Napoli.
The Wales star believes the Liverpool midfielder is crucially important to the country's hopes.
Nottingham Forest are closing on their next manager.
The former Newcastle United midfielder insists Townsend has been outstanding but stresses that there are no hard feelings over his England omission.
Leeds United are interested in signing Kemar Roofe.
Tottenham have been knocked back with their first bid for Vincent Janssen.
Ibrox side Glasgow Rangers are set to renew hostilities with Celtic next term, and Kenny Miller is bored of Joey Barton's efforts to stoke the fires.
Tottenham are keen to land striker Antonio Sanabria, according to the player's agent.
The French midfielder has lit up Euro 2016, however he was not convinced he was going to get the call-up, unlike West Ham captain Mark Noble.
Newcastle United are the favourites to sign Grant Hanley, who has been linked with Derby County and Sheffield Wednesday.