According to one report today Villa have stepped up their move for the want-away former England international who has been of interest to Everton for some time.
Blues boss Sean Dyche is an admirer of the player once dubbed 'The Yorkshire Pirlo' after his standout performances for Leeds United saw him become a fixture in the England team and then secure a big money move to the Etihad Stadium.
That transfer to City has however not worked out and Phillips went to East London last season for what turned out to be a disastrous loan move to West Ham that meant he also lost his place in the England squad and missed out on Euro 2024.
Now, he wants to reignite his career somewhere else and the Champions seem more than ready to let him go this summer.
Everton are certain to want a loan deal - perhaps with an option to buy - given their financial constraints and the fact the club have already signed four players, two of whom are on loan.
Competition from Villa for Phillips will not be welcome for Dyche as he searches for affordable central midfield options to reinforce that area of his team having just lost Amadou Onana to the Midlands club themselves.
Of course they can offer the player Champions League football and therefore a higher profile with which to try and revitalise his England career.
Additionally, Villa might well offer a fee outright, something which City would prefer and that the Toffees seem very unlikely to be able to do.
That is because of the crisis over the future ownership of the club and the fact that whatever resources are available for signing new players might well be spent on other priorities.
If Phillips does go to Villa Park, then Everton will obviously have to look elsewhere and see whether there are other defensive midfield alternatives to shore up the engine room next season.