Townsend, who helped the 1997 Lions win the Test series in South Africa, took over as head coach at Glasgow Warriors at the start of the season and has steered them into the Play-Offs after a third-place finish in the regular season.
His attacking style has also benefitted two of his back line players win places in the 2013 Lions squad bound for Hong Kong and Australia, Stuart Hogg and Sean Maitland.
Hogg graduated from the RaboDirect PRO12 'Young Player of the Year' in 2012 into the 2013 Dream Team. He was one of six of the tournament's 24 Lions squad members to make the Dream Team.
Joining him behind the scrum were the Scarlets duo of George North and Jonathan Davies, while up front the selectors, journalists from all four participating nations, chose the Ospreys trio of Adam Jones, Alun Wyn Jones and Justin Tipuric
RaboDirect PRO12 Dream Team 2012/13:Stuart Hogg (Glasgow Warriors)); George North (Scarlets), Jonathan Davies (Scarlets), Luke Marshall (Ulster Rugby), Tim Visser (Edinburgh Rugby); Ian Madigan (Leinster Rugby), Niko Matawalu (Glasgow Warriors); Ryan Grant (Glasgow Warriors), Leonardo Ghiraldini (Benetton Treviso), Adam Jones (Ospreys), Alun Wyn Jones (Ospreys), Al Kellock (Glasgow Warriors), Alessandro Zanni (Benetton Treviso), Justin Tipuric (Ospreys), Nick Williams (Ulster Rugby)