The Daily Star says Townsend has been fined Â£18,000 for gambling offences â€“ but will not miss a single Premier League game.
The FA last night hit the 21-year-old with a four-match ban for breaching strict betting regulations.
But his ban is backdated to May 23, and three of those months have been suspended until July 1 2016.
Townsend has already withdrawn voluntarily from the England squad for the European Under-21 Championship in Israel.
But that will be the only football he misses as he will now be available to start the new season.