The England international has been strongly linked with a move to St Mary's, with reports he could be involved in a deal which would see Jay Rodriguez go the other way.
However, Press Association Sport claims Townsend is no longer one of the players Southampton are looking at, although they remain keen to bring in a winger.
Saints manager Ronald Koeman also wants to strengthen his defence before the window shuts, with Atletico Madrid's Toby Alderweireld one of the players the club are negotiating with.
It is understood the only players leaving St Mary's will be fringe players, with the club remaining firm in their stance that the likes of Rodriguez and Morgan Schneiderlin, of interest to Mauricio Pochettino's Spurs, are not for sale.
- Sports & Recreation
- Jay Rodriguez
- Toby Alderweireld