The Liverpool academy graduate is all set to move out on what will be his third spell away from the club, this time joining the Scottish champions.
Brendan Rodgers, the current Celtic manager, is looking to make sure he has enough squad depth to handle the challenge of the Champions League.
Phillips is now set to travel to the Scottish capital where he will undergo his medical before sealing the move.
The Hoops have been active in the transfer market this summer, bringing in as many as seven players on permanent deals.
Liverpool have been looking to sell Phillips, but the defender is again going out on loan.
Phillips had interest from England as well where Championship side Middlesbrough were keen on signing him.
Boro make an approach, but the lure of playing for Celtic in Scotland looks to have turned Phillips’ head and won the day.