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.
