Manchester City made Phillips a top target for this summer’s transfer window as they seek cover for Rodri in the middle of the park.
They have now agreed a fee of £42m plus £3m in bonus payments with Leeds for Phillips and are moving to finalise the transfer.
Thoughts are increasingly turning towards Phillips’ replacement at Elland Road and the Whites are keeping tabs on Adams.
The American, who played under Jesse Marsch at New York Red Bulls, is one of the options Leeds are considering.
Adams joined RB Leipzig in 2019 and completed the full 90 minutes just eight times in the Bundesliga for the club last season.
The German outfit are looking to sell him in the ongoing transfer window and all eyes will be on whether Leeds do decide he is the right man to replace Phillips.
Leeds have already added one midfielder this summer in the shape of Marc Roca, who joined from Bayern Munich.