Phillips is well down the pecking order of centre-backs at Anfield and Liverpool are prepared to let him move on this month for the right price.
Newcastle chief scout Steve Nickson is an admirer and has had Phillips on his shortlist for more than a year.
It has been assumed that Newcastle would bid for the centre-back and Liverpool have been expecting an offer from the Magpies throughout the month.
No bid has yet to arrive, but it is still considered to be a deal which Newcastle would be able to do late in the window.
Newcastle have been looking to sign two centre-backs this month, but have yet to sign one.
They tried to sign Sven Botman from Lille, but faced disappointment as the French outfit refused to sell.
Sevilla defender Diego Carlos has also proven to be out of reach, with Newcastle’s bid for the Brazilian being dismissed by the Spanish giants as not high enough.
Liverpool currently have Virgil van Dijk, Joe Gomez, Joel Matip and Ibrahima Konate ahead of Phillips in the centre-back pecking order.
