But his form has waned since – forcing him down the pecking order.
The England international has struggled under both Alan Pardew and Sam Allardyce at Selhurst Park.
It was reported last week Newcastle had opened talks with Palace over a deal.
Andros Townsend could be about to return to Newcastle
Andros Townsend has endured a difficult time at Crystal Palace
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And the Daily Mail claim negotiations are ongoing.
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However, the deal could hinge on what sort of offer Rafa Benitez's side are willing to make.
Townsend wants to return to St James' Park on loan rather than commit to a side battling for Premier League promotion.
Andros Townsend spent six months at Newcastle last season
He would rather wait until the end of the season – when the futures of both clubs will become clearer – before potentially leaving Palace on a permanent basis.
While Newcastle are flying high at the top of the Championship, Palace are battling for Premier League survival.
Their bid to remain in the top flight took another blow after a 1-0 defeat to Everton yesterday.