Romelu Lukaku has been in fine form for Everton so far this season.
Arsene Wenger is reportedly willing to spend some money in January with several of his squad now injured.
The Championship leaders will be hoping that Towell can strengthen their promotion push.
The West Ham United youngster made his loan debut for Peterborough United at the weekend.
Jordan Henderson and Daniel Sturridge both made returns from injury as second half substitutes in Liverpool's 1-0 win over Swansea City.
Sheffield Wednesday are currently level on points with the play-offs in the Championship.
The Swans are struggling in the Premier League this season and are in danger of getting relegated to the Championship.
Newcastle United were beaten 5-1 by Crystal Palace in the Premier League on Saturday afternoon.
West Ham United and West Bromwich Albion played out a 1-1 draw at the weekend.
Callum McGregor has admitted he wants a long-term stay at Celtic.
Bild claims that an €18 million deal is nearing completion for Xherdan Shaqiri, who looks to be heading to the San Siro this month.
The Argentine is currently not in the picture at Norwich City.
Arsenal reported to have dropped their interest in St Etienne's Loic Perrin but may face work permit issues in pursuit of Villarreal's Gabriel Paulista.