After moving from Leeds for £45 million two years ago, Phillips has not been able to establish himself in the City starting lineup.
In an attempt to earn a berth for England at Euro 2024, he signed with West Ham on loan for the second half of the previous campaign. However, a combination of bad form and injuries destroyed his prospects of making Gareth Southgate’s squad.
There is no opportunity to sell in the loan agreement.
The 28-year-old received high marks from City manager Pep Guardiola during the team’s preseason tour of the United States, but despite star midfielder Rodri being done, he was benched for Saturday’s Community Shield victory over Manchester United.