The winger, a Newcastle United target, was banished to the Under-21s earlier this season after falling out of favour at White Hart Lane.
Townsend, also linked with Southampton, is available for around £14million in this month's transfer window.
The England international, desperate to be playing week in, week out, ahead of Euro 2016 this summer, is understood to be keen on a move to St James's Park.
And Townsend's situation could be resolved soon.
The 24-year-old said on Twitter: "Been an absolute pleasure playing with the u21 boys the last 3 or 4 months!"
Newcastle, involved in protracted talks with Tottenham over a move for Towsnend, are looking to make a breakthrough this week.