Phillips, 24, stepped up when required last season and won plaudits for his performances as he helped Liverpool secure an unlikely top four finish in the Premier League.
Following the return to fitness of Joe Gomez, Joel Matip and Virgil van Dijk, along with the signing of Ibrahima Konate though, Phillips has little prospect of game time.
He has attracted interest from a host of clubs and Liverpool officials are expecting offers within the coming hours.
The Reds’ stance has been that he will not be loaned out.
They value Phillips at around £12m and are looking at a permanent sale of the defender.
However, if no permanent offers arrive then it remains to be seen if Liverpool have a rethink and agree to a loan.
The Reds are claimed to be prepared to keep Phillips as backup and look again at his situation in January if they are not happy with the proposals.
