"towel off" is correct and usable in written English.
You can use it when referring to the act of drying oneself after swimming. For example: After swimming in the pool, I dried myself off with a towel.
After winning Game 1 on Tuesday, he let the players towel off first.
Then you get out, towel off and wander over for a four-star meal under glowing lanterns and Caribbean stars.
But it wouldn't be so hard to hang up a curtain; you towel off in there, wrap up.
Then you get out of the bathtub, and you towel off, and then you wear them around, wet, for as long as it takes them to dry.
With about 20 minutes left, there is a strange break in the show, in which the dancers pause to towel off and change into fresh clothes.
Ashe and Graebner walk to the umpire's chair to towel off and wipe their glasses before exchanging ends of the court.
He toweled off his forehead.
"Baby steps," he told me, toweling off from his warm-up.
With rain still falling, Djokovic began thoroughly toweling off as soon as he reached his chair.
He looked as though he'd just towelled off and stepped into a watch ad.
On a recent weekday, a few women were toweling off after exercise class.
