The Tractor Boys returned to the English top division after 22 years and are looking to strengthen their squad for the season ahead.
The Englishman wasn't in Pep Guardiola's plan for the upcoming campaign, despite playing as a centre back in the pre-season friendly games.
Ipswich Town have officially announced the signing of Sammie Szmodics, the top goalscorer of the 2023-24 Championship campaign
The Irish forward scored 27 goals in 44 games last season despite his side's poor performance.
Additionally, he was named in the Championship Team of the Season.
Earlier, it was revealed that Szmodics was set to undergo medical tests with Ipswich on Friday, after the clubs finally reached an agreement over the player's switch.
Although an initial bid of £7m for the 27-year-old player was rejected, it is now official that Blackburn Rovers have sold the player permanently.
Commenting on his move on the club's website, an excited Szmodics said: 'I am delighted to be here as an Ipswich Town player.
'There's always been interest since I was a kid, but it just felt right this time with the challenge of the Premier League.
'It's every boy's dream to play in the Premier League and I've always said to my friends, family and agents that I'll get to the top one day.'
Ipswich manager Kieran McKenna was also thrilled by the move: 'We think Sam brings a lot of different qualities to the squad and is an experienced player who has worked extremely hard over the years to improve his game and to become more and more effective as a player.'
However, the Irish international is expected to be one of many signing in the Town's attack. As revealed earlier, The Tractor Boys also made an inquiry over Armando Broja.
The Albanian's current club, Chelsea, is in desperate need of some exits, given their pool of attacking players such as Marc Guiu, Christopher Nkunku and Nicolas Jackson.
Phillips, 28, is given another chance to revive his career, after struggling to find his peak form during his previous loan spell at West Ham United
His previous loan spell at West Ham United is considered disappointing, with the player featuring in only eight Premier League games.
The Citizens signed him before the 2022-23 campaign for £42million, and he has four more years of his current contract.
Phillips and Szmodics become Ipswich's fifth and sixth signings of this summer transfer window.