Leeds have reached an agreement to sell the 26-year-old midfielder to the Premier League champions this summer.
Manchester City have agreed to pay an upfront fee of £42m with potential bonuses up to £3m based on what he does at the Etihad.
There were claims that Leeds were looking for more money and Cascarino is of the view that given his quality Manchester City are getting for a relatively reasonable fee.
He feels that the injuries the midfielder suffered last season could have had a bearing on the transfer fee but stressed that Manchester City are getting a solid player in the England international.
Cascarino said on talkSPORT: “I thought it was quite cheap.
“Now he had an injury-plagued season and if you go back last summer, someone would have openly paid £60m plus for Kalvin Phillips.
“But he was injured most of the season.
“They are getting a really quality [player], you can trust Kalvin Phillips to do a job for you and that’s the big thing.”
Phillips is expected to travel to Manchester soon to undergo a medical with the Premier League champions.
Leeds will now look to be in the market to bring in a ready-made replacement for the England star this summer.
