Kenedy, 22, had a successful six-month loan spell at St James' Park last season, scoring two goals in 13 appearances for the Magpies, and the Chronicle have said that manager Rafa Benitez, who has had talks with the Brazilian winger's representative Giuliano Bertolucci, will make a plea to the Newcastle board to meet Chelsea's asking price of £30 million.
Townsend, meanwhile, is also a former Newcastle player, having had a six-month spell in the North East in 2016, when the club suffered relegation to the Championship. His current club, Crystal Palace, activated a £13m relegation release clause to sign him following that dismal season for the Magpies.
It is believed that the 26 year-old England international would cost Benitez £18m, but a move for Townsend will only be possible if they can offload winger Matt Ritchie, reports the Sun. The Scotland international is valued at £15m, with both Stoke City and former club Bournemouth interested parties.
Kenedy's proposed move to Newcastle will suit both parties as the Brazilian winger has endured a tough spell at Stamford Bridge. He has rarely featured for the Blues since being sent home from a pre-season tour to China for offending the country on social media.
It is understood that Chelsea's uncertainty over the future of manager Antonio Conte will not affect Newcastle's pursuit for Kenedy, with Football London claiming that the west London club have not planned a future role for the Brazilian in their pre-season plans.
Townsend, on the other hand, was a regular for Roy Hodgson's Palace side, playing 36 games and scoring twice. Despite the importance of the Englishman to their side, the Sun report that the Eagles will listen to any offers for Townsend.
Newcastle will want to close and confirm these deals quickly, as many of the Magpies squad returned for pre-season on Monday ahead of the start of the Premier League season on August 11th.