Injuries and the outstanding performance of fellow midfielder Rodri were the primary factors preventing Phillips from becoming a regular first-team player last season. Many expected him to step in when Rodri received a three-match ban for violent conduct last month, but surprisingly, Phillips played only in an EFL Cup match against Newcastle and returned to the substitutes' bench for games against RB Leipzig, Wolverhampton Wanderers, and Arsenal.
Instead of Phillips, Pep Guardiola opted for summer signing Mateo Kovacic and Matheus Nunes in the center midfield, along with 18-year-old versatile full-back Rico Lewis. In a recent defeat to Arsenal, Bernardo Silva played in a deeper midfield role alongside Lewis. Despite having five years left on his contract at the Etihad, Phillips now faces an uncertain future with his position in the team sliding further down under Guardiola's management.
According to The i, Man City considered letting Phillips go this summer, but he expressed his desire to stay and compete for his place. However, a January departure from the treble-winning team now seems increasingly likely for the Englishman. The most probable scenario would be a loan move in the winter transfer window, with significant interest in his services.
Newcastle had inquired about Phillips in the summer and may renew their interest in January. Everton has also shown interest, but a loan move is the only feasible option for them due to their financial situation and ownership uncertainty.
Arsenal has been linked to Phillips, with reports suggesting that Mikel Arteta considers him a primary midfield target for 2024. There's also been speculation about a possible move to Liverpool or West Ham United for Phillips, who is currently away on international duty with England for a friendly against Australia and two Euro 2024 qualifiers against Italy and Malta later this month.
If Manchester City decides to part ways with Phillips, they could intensify their interest in Benfica's 19-year-old midfielder, Joao Neves.