The Reds signed Wataru Endo last week to add a fix to their midfield issues in the ongoing transfer window.
Liverpool are in the market for another midfielder and possibly a centre-back before the window closes on 1st September.
The Merseyside giants are looking around for solutions with little less than two weeks left in the ongoing transfer window.
And it has been claimed that Phillips has been added to the shortlist of midfield targets Liverpool are considering.
Phillips joined Manchester City last summer and was on the fringes of Pep Guardiola’s first-team squad last season.
The midfielder is yet to get on the pitch this season as well and has been an unused substitute in all the games thus far.
Liverpool are considering the possibility of trying to sign the former Leeds midfielder this summer.
Phillips has so far been reluctant to leave Manchester City but an offer from Liverpool could test his resolve.