Football Insider reported earlier this month that the winger was weighing up the shock possibility of staying at Newcastle in order to continue working with Rafael Benitez.
But Townsend is now headed for Palace Park as he becomes the first senior Newcastle player to quit following the club’s relegation from the Premier League.
It would also mean a quick return to the city in which he grew up following the attacking midfielder’s January switch from boyhood club Tottenham to the north-east.