Phillips has found life at the Etihad Stadium tough since joining Manchester City from Leeds United, where he flourished under Marcelo Bielsa.
Manager Pep Guardiola has revealed that the England midfielder has struggled to convince him to hand him minutes and his situation does not look likely to change.
A move in January is widely expected for Phillips, with Juventus and Newcastle two clubs showing keen interest.
It had been suggested in some quarters that Newcastle are advanced with a move to sign the midfielder on loan.
However, it is now claimed they have not made a move for Phillips so far.
Phillips, on his part, wants to stay put in England, though it remains to be seen whether the Cityzens will be interested in finding a domestic solution for the midfielder.
Fellow Premier League side Tottenham have also been keeping an eye on the situation.
Ange Postecoglou’s side have been stretched multiple times this season owing to injuries to key players and are expected to dig into the market when it opens.
