The 29-year-old is set to become a free agent when his contract at Crystal Palace expires in the next few weeks.
Steve Bruce’s side have been briefly touted as a potential destination but Townsend revealed he has received “tempting” offers from abroad.
Townsend made 185 appearances for Palace after joining from then relegated Newcastle in 2016.
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He told talkSPORT: “The offers I have had so far are abroad.
“One offer in particular is offering Champions League group stage. Very tempting.
“This is why I am excited and want to see what else comes in then make a decision.
"I want to stay in the Premier League but no disrespect to myself, there aren’t going to be many teams that will come after me who are in the Champions League.
"It’s interesting – I’ve got a lot of thinking to do.”
Ex-Newcastle loanee released by Spurs
Danny Rose has ended his 14-year association with Tottenham Hotspur after it was announced his contract would not be renewed this summer.
The former England left-back made 214 appearances for Spurs – which included a Champions League final defeat to Liverpool in 2019.
However, things soon turned sour when Jose Mourinho was appointed as Mauricio Pochettino’s successor. Rose was frozen out and loaned to Newcastle for the remainder of the 2019/20 season.
Indeed, that was the last time the 30-year-old played a competitive first-team match after being banished to the under-23s.