The Eagles midfielder has become of interest to a number of clubs in the ongoing summer transfer window, including Wycombe Wanderers.
He is also wanted north of the border though, where both Aberdeen and Dundee are admirers of his abilities.
Phillips must though put pen to paper to a fresh deal with Crystal Palace before a loan exit for the season is sanctioned by the Premier League club.
He spent the second half of last season on loan at Shrewsbury Town and played regularly in League One.
Palace are happy for the midfielder to continue his development and a switch away from Selhurst Park is on the cards.
He could be tempted by the prospect of playing his football in the top tier in Scotland as he kicks on with his development.
Phillips has made a single appearance for Crystal Palace’s senior side.
