Phillips has played just 318 minutes of club football in the 2023-24 season and has yet to start a Premier League game.
Even in the absence of Rodri, City boss Pep Guardiola is reluctant to play the England international.
So, it comes as no surprise that talkSPORT are reporting that the Spaniard would allow Phillips to leave on loan next month.
As mentioned, Newcastle are a likely destination, while Crystal Palace and Everton are also interested in his services.
Meanwhile, Serie A giants Juventus are rumoured to be weighing up a move for the 28-year-old.
Phillips to Newcastle?
Newcastle have been short of midfielders since Sandro Tonali was hit with a 10-month suspension for breaking gambling rules.
17-year-old Lewis Miley has impressed for Eddie Howe’s side but they are still in need of more quality in that area.
Phillips, who starred at Leeds before moving to the Etihad Stadium, would be the ideal January addition.
— Newcastle United FC (@NUFC) December 26, 2023
A Premier League proven player with a point to prove ahead of the European Championship next summer, he would almost certainly flourish at St. James’ Park.
A loan move would also present no risk to Newcastle in case he did struggle to perform or suffered a long-term injury.
While, in the likelihood that he succeeds, he would probably be available for a reasonable fee in the region of £30 million next summer.