A host of clubs are chasing the England international who has been made available for transfer by Tottenham but it is Newcastle and Watford who have emerged in pole position.
West Brom were also keen, and he was been talked about by both clubs as a possibility in a Berhaino deal - but he has made it clear that he does not want to move to the Hawthorns - ironically, he could now very well join the Baggies man at St James' this month.
Newcastle have held talks with Spurs but have baulked at their initial demands for £15 million, which HITC Sport understands has now dropped to less than £12 million - but ideally, like with Watford, Newcastle would rather loan him first.
Townsend has been promised regular first-team football by Steve McClaren and he still has huge hopes that he could make England’s squad for Euro 2016.