Everton, Ipswich Town and Fulham have all expressed interest in the 28-year-old over recent weeks as he looks to thrash out his immediate future.
Phillips, who City signed from Leeds United for £42million two years ago, has struggled to integrate into Pep Guardiola’s style of play at the Etihad Stadium.
The England international spent an unsuccessful loan spell at West Ham United during the latter stages of last term and missed out on a spot at the European Championship.
Kalvin Phillips will look to recapture his form after a difficult 2023-24 season at Man City and on-loan at West Ham
But he failed to make an appearance off the bench during Saturday’s Community Shield victory over Manchester United and Guardiola revealed that ‘Kalvin knows the situation’ as to his place among the squad.
Sean Dyche is an admirer of Phillips, while Fulham and Ipswich are looking at bolstering their midfield ranks.
He had impressed as a centre half for City, with Guardiola believing a wider view of the game ahead of him benefits Phillips’ performances.
Phillips still has four years left to run on his contract at City.