Despite City's successful season, Phillips found limited opportunities due to a combination of injuries, competition from other players, and an inability to impress manager Pep Guardiola. He made only four starts and appeared as a substitute in 17 matches across all competitions. Although there have been suggestions that he might seek a transfer away from City, Phillips has publicly denied having any plans to move elsewhere.
However, speculations about his future persist, particularly as City is reportedly making efforts to sign Declan Rice from West Ham United. Regardless of whether Rice joins City or Arsenal, it is believed that West Ham holds an interest in Phillips and might consider him as an alternative option.
BILD reports that Bayern Munich is closely monitoring the situation and could potentially compete for Phillips's signature. The Bundesliga champions' existing relationship with Phillips's representatives may give them an advantage if a bidding war occurs.
Head coach Thomas Tuchel is eager to revamp his squad in the coming months, with central midfield being an area of concern due to a lack of depth. While the arrival of Konrad Laimer from RB Leipzig will improve the situation, additional competition is required to complement Joshua Kimmich, Leon Goretzka, and Ryan Gravenberch, whose future at Bayern remains uncertain. Moreover, Marcel Sabitzer has returned to the Allianz Arena after his loan spell with Manchester United, although it remains unclear whether he will remain in the squad or be sold.
Bayern and City are expected to engage in discussions in the coming days, as the German giants are keen to secure a deal for defender Kyle Walker. The two clubs have previously collaborated on the loan deal involving Joao Cancelo in January, and their positive working relationship could benefit all parties involved if Phillips feels that he has not advanced in the pecking order under Guardiola, even with Ilkay Gundogan's departure.
