Chelsea boss Jose Mourinho values Belgium playmaker Eden Hazard at £200m after reported interest from Real Madrid.
Alan Pardew is weighing up chasing a big-name summer signing to boost Crystal Palace's profile.
The 23-year-old winger rose to prominence last season and was in particularly eye-catching form for England - impressing following his September 2013 debut only for an ankle injury to deny him the chance to go to the World Cup.
Southampton, who showed promise at Liverpool on Sunday despite losing 2-1, are hoping new manager Ronald Koeman can strengthen the squad before the transfer window closes having sold key men Adam Lallana, Luke Shaw and Rickie Lambert for a combined total of around £60m.
The Dutchman is thought to have identified Townsend as a potential replacement for his England colleague Lallana, but Spurs have dismissed their initial offer.
It is also rumoured that Townsend is keen to stay at White Hart Lane and fight for a starting role despite competition from the likes of Aaron Lennon, Erik Lamela, Nacer Chadli and Christian Eriksen.