Reports circulated this morning that the England winger had travelled with the rest of the Palace squad for tonight's Premier League match with Bournemouth at Dean Court.
And pictures, taken by the club, then confirmed that. While that was expected, it had been rumoured that Townsend would not be involved in the matchday 18, with Newcastle closing in on a loan deal for the player ahead of the 11pm deadline.
But Allardyce has named 25-year-old Townsend as one of the eight Eagles subs.
That throws any switch back to St James' Park in to major doubt, especially as, were he used, he is at risk of injury.
Townsend is not necessarily required to undergo a medical, though, with United already possessing much of his medical history.
And that certainly would not have to take place in the North East, were one required.
So, with that in mind, the deal is not strictly dead, although the Magpies will face a race against time to get it done this evening, with just an hour and a half between the final whistle and the end of the January window.
Rafa Benitez is a huge fan of Townsend, and admitted earlier today that he was confident of getting a deal done this evening.