A story in Sportwitness and others claim that Everton might be moving on from attempts to bring in the Manchester City midfield star as new names are linked.
Reports that Aston Villa are seriously considering a move for the former Leeds United and England player, could well scupper the Toffees hopes of securing his signature.
Villa would probably be able to offer a fee upfront and certainly can provide Phillips with Champions League football, all of which the Blues would be unable to match.
So, according to this rumour, Everton are inquiring about the availability of Strasbourg's 20-year-old midfield ace Habib Diarra.
The young Frenchman made twenty-eight appearances in Ligue One last season and managed three goals during the campaign, a decent return.
Everton have though already brought in a young midfield talent when they signed Tim Iroegbunam from Villa earlier in the transfer window.
Since then they have also sold another midfield star when Amadou Onana left for the West Midlands and Villa Park, again.
As a result of all this transfer business, the Blues are potentially a little short of options and depth in the centre of the pitch going into the new campaign.
Onana was essentially a defensive midfield player - at least in terms of how he generally played - and while the Toffees have veterans Idrissa Gueye and Abdoulaye Doucoure, neither have time on their side.
Apart from those two Everton would have to turn to young players like Iroegbunam, James Garner or even Tyler Onyango.
So, it does not seem to make a great deal of sense for the club to look at bringing in another very young player and at least in Premier League terms, little relevant experience.
Alongside this is the issue of money and whether the Blues would be able and willing to shell out up front, given how tight finances are and other possible transfers, which seem likely to happen.
Instead, the Toffees might be better looking for a more experienced defensive type of midfielder to shore up the middle and help protect the backline.
This story is purely speculative at the moment and there is no indication there is any firm foundation to it with nothing to give any strength to the story from the club.