Despite their interest in Townsend, the Foxes are also thought to be keen on completing deals for Manchester City's 21-year-old winger Patrick Roberts and Norwich's James Maddison. However, it is not yet known whether or not Townsend is viewed as an alternate target to Roberts or if they intend to move for him regardless, as reported by the Daily Mail.
It is possible that Townsend is being viewed as a squad replacement for the Foxes wantaway Algerian star Riyad Mahrez, who has been heavily linked with a move away from the King Power Stadium for some time now.
Furthermore, the Foxes could supposedly acquire West Brom defender Jonny Evans for a meagre £3m, although it is being reported that the 30-year-old Irishman's representatives will demand a sizeable commission should a deal for the former Manchester United man go through.
However, Leicester are set to face competition from Crystal Palace in their pursuit of Evans, with the Townsend deal potentially hanging in the balance.