The Cityzens signed Phillips from Leeds United last summer for £45m, however, he has struggled to command regular game time under Pep Guardiola.
The former Whites star had a bit part role in Manchester City’s treble-winning squad last season and the club also considered offering him to West Ham in a deal for Declan Rice.
Now Phillips is being linked with another move away and has been mooted as an option for Liverpool, who are desperate for a defensive midfielder.
However, Liverpool face competition for Phillips as, according to Turkish journalist Elis Buse Arac, Fenerbahce have kicked off official attempts to sign him.
He appeared 21 times for the Cityzens last season in all competitions, where he accumulated only 593 minutes of first-team football.
Whether moving to Turkey is something which would appeal to Phillips is unclear, as is whether the Yellow Canaries can meet any asking price Manchester City set.
Manchester City could however prefer to sell Phillips to a club abroad rather than strengthening domestic rivals.
