The 22-year-old is currently earning less than £10,000-a-week at White Hart Lane.
The Sunday Mirror reports that Spurs are ready to hand the winger a new deal that will see his annual salary increase to around £2million.
Townsend signed a new five-year contract with Spurs two years ago.
The winger scored in England’s 4-1 victory over Montenegro in a World Cup qualifier on Friday night.
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As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?
Being an amiable guy is good for you and Jurgen Klopp is living proof.