With Matheus Nunes and Mateo Kovacic arriving to bolster the Citizens' midfield ranks in the summer, the former Leeds United man remains on the fringes of Pep Guardiola's team.
Phillips's only start this season so far has come in the EFL Cup, and it was a joyless affair for the Englishman, who picked up a yellow card as City lost in the third round to Newcastle United.
Rodri's three-game domestic suspension has not opened the door for Phillips to reignite his City career in the Premier League either, as he has played just 70 minutes of football across three substitute outings.
The 27-year-old was left on the bench for last weekend's 1-0 defeat to Arsenal, and he was also an unused substitute against RB Leipzig in the Champions League after earning a mere seven minutes against Crvena Zvezda.
Phillips's contract at the Etihad Stadium runs until the summer of 2028, but the midfielder is allegedly set to make a swift exit from the treble winners amid links with several English clubs.
Arsenal — who poached Gabriel Jesus and Oleksandr Zinchenko from Man City last year — are said to have made Phillips their top midfield target for January, as Mikel Arteta prepares for life without Jorginho.
Newcastle United and Everton have also been credited with an interest in the England international, who is without a goal or assist in 26 games for Guardiola's side and started just two Premier League games in his debut campaign, in which he was also hampered by a shoulder problem.
Despite his underwhelming time at the Etihad, BILD journalist Christian Falk reports that Phillips's name has been brought up in conversations at
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