The veteran rockers - who recently played a controversial half-time set at the Superbowl - have had their future thrown into doubt following the return of the 64-year-old's tinnitus.
Townshend told Rolling Stone that the group are "finished" if his hearing continues to causes problems.
"If my hearing is going to be a problem, we're not delaying shows, we're finished," he revealed. "I can't really see any way around the issue."
However, Townshend went on to say that he will be testing a new in-ear monitoring system for the band's Teenage Cancer Trust gig at London's Albert Hall, in a bid to help alleviate the problem.
Suffering from a repeated ringing and buzzing, Townshend's affliction is the result of years of exposure to high volumes during gigs.