The 20-year-old is one for the future at White Hart Lane after recently signing a new deal until the summer of 2016.
Townsend, who is also being linked with Millwall and Leicester, played a big part in Spurs' Europa League campaign.
Spurs boss Harry Redknapp has hinted at loaning out his fringe players in order to bolster their first-team experience and Skysports.com understands Leeds want to bring him to Elland Road.
The West Yorkshire side's hopes of reaching the play-offs have faded recently and manager Simon Grayson has been scouring the market for reinforcements.
It now seems the former Millwall, Watford and Ipswich Town loanee could be the man to help lift Leeds back into the Championship's top six.