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Newcastle United are ready to offer Andros Townsend an improved contract in a bid to fend off interest from Crystal Palace, who are ready to trigger his release clause.

United’s relegation means that they are a prime target for clubs who are circling their best players. Georginio Wijnaldum was watched by Everton as he played for Holland against Austria on Saturday while Moussa Sissoko is interesting Arsenal and Paul Dummett will have offers from Premier League clubs.

Daryl Janmaat is also the subject of strong interest from Juventus, although they would not be prepared to meet Newcastle’s £7million asking price.

Rafa Benitez set out United’s negotiating position last month when he insisted that no players would be sold unless he agreed to it and he would like to keep Townsend, whose contractual status means that he is one of the more vulnerable of the club’s coveted stars.

Townsend’s contract is structured in such a way that he could have walked away for £8million if a club in the top six of the Premier League made an offer and he had made a certain number of England appearances. But the club insist the release clause is nearer £13million, a fee which would see them at least mitigate any losses on the January buy from Spurs.

United do not want to lose Townsend and the player himself is understood to be keen on playing for Benitez – but Palace’s interest gives him the option to keep playing in the top flight.

Townsend will decide his future when he returns from holiday at the end of the month but Newcastle are prepared to discuss terms with the England man and bump up his contract in an effort to keep him at St James’ Park.

Newcastle do not want to see their team break up but are aware that there is little chance of keeping everyone they want to. Benitez is also prepared to sacrifice some of last year’s key players as he looks to remodel a side that came up short when it mattered.