During the 2020-21 season, Phillips was drafted into the starting lineup and made an immediate impact in helping Liverpool secure Champions League football.
However, despite that breakthrough campaign, Phillips has never been viewed as a first-choice player by Jurgen Klopp, the player's career having since stalled.
Phillips made 17 starts for Bournemouth in 2022-23, helping the Cherries earn promotion back to the Premier League, but he stayed on Merseyside for the following 12 months.
The 26-year-old was provided with just 232 minutes spread across five matches, with no appearances coming after the FA Cup third-round replay at Wolverhampton Wanderers in January.
With two years left on his contract, it is plausible that Klopp may consider retaining Phillips as a fifth-choice centre-back, particularly when Liverpool are featuring in the Europa League.
Nevertheless, much will depend on the level of offers that Liverpool receive over the next two months, with the club open to generating funds due to the outlay on their own targets.
According to The Athletic, Feyenoord have emerged as a potential destination for Phillips if they choose to press ahead with a formal bid.
Arne Slot has just guided Feyenoord to a surprise Eredivisie title, subsequently resulting in a return to the Champions League group stages.
Although Feyenoord are back at the continent's top table, it remains to be seen whether they are prepared to meet Liverpool's reported valuation of £10m.
That said, Slot has money at his disposal after the sale of Orkun Kokcu to Benfica, with a replacement having already been found in Ramiz Zerrouki for a third of the price.
Leeds United, who have just been relegated to the Premier League, have also been credited with an interest in Phillips and may make an approach once their new ownership is confirmed.
On Tuesday night, the Yorkshire giants announced that they had appointed Daniel Farke as their new head coach, a necessary development before they attempt to push through deals for new players.