The midfielder is currently spending the 2024-25 term on loan from Manchester City at Portman Road, where the East Anglian club are looking to avoid relegation back to the Championship.
Phillips is aiming to get his first-team career back on track after a difficult two years since making the high-profile switch from Leeds United to the Citizens during the summer of 2022.
Once a stalwart in Gareth Southgate's England side, the 28-year-old has failed to be called up for the Three Lions squad since November 2023.
Over the course of two years at the Etihad, Phillips managed just two starts in the Premier League for Pep Guardiola, who clearly prefers the likes of Rodri and Rico Lewis in the engine room.
"Proper nonsense" - Ipswich boss blasts Phillips exit rumours
Following a mixed start to life at Portman Road, reports have emerged that Phillips's loan deal at Ipswich could be cut short during the January window.
Speaking after the Tractor Boys' dramatic 4-3 defeat at Brentford on Saturday afternoon in the Premier League, manager McKenna poured cold water over the claims surrounding the 28-year-old's future.
"What can I say about that? Proper proper nonsense. You can write something and it gets picked up and becomes a story, absolute nonsense," McKenna said.
"There have been no conversations of the like and it's a real shame. He had a very good game today (Saturday)."
After defeat at the Gtech Community Stadium, Ipswich remain 18th in the Premier League table, two points behind Crystal Palace in the relative safety of 17th.
A statistical look at Phillips's start
Despite a mixed start in terms of performances, Phillips has been trusted in the midfield in East Anglia, starting six of the last seven Premier League contests.
That is triple the amount that he has managed for Manchester City so far, showing that first-team opportunities are more likely to arrive at Portman Road.
Known for his dogged defensive work, Phillips provided a defence-splitting pass that led to Sammie Szmodics's goal versus the Bees on Saturday afternoon.