The former Leeds United man rose to prominence at Elland Road during the COVID-19 era, playing key roles in propelling the Whites to the Premier League and keeping them in the top flight for two seasons.
Phillips's qualities were noticed by Man City boss Pep Guardiola, who sanctioned a £41.4m deal to bring him to the Etihad in the summer of 2022, but the England international has failed to make the grade in Manchester.
Over the past two seasons, Phillips has only played 31 times for the reigning Premier League champions due to a combination of injuries and competition for places, scoring once in a Champions League win over Red Star Belgrade in December.
Phillips did not start a single Premier League game for Guardiola's side in the first half of the campaign before being shipped out to West Ham United on loan, where his misfortunes continued under David Moyes.
Everton 'touch base' over Phillips deal
The 28-year-old was sent off on just his fourth appearance for the Irons and quickly lost his place in the starting lineup, playing just 15 minutes in the last five matches of the Premier League campaign.
West Ham unsurprisingly did not pursue a permanent move for Phillips, whose contract at Man City still has another four years left to run, but he has no future at the Etihad under Guardiola.
According to the Daily Mail, Phillips could be offered a Premier League escape route by Everton, who have made an enquiry about taking the Leeds United man off of their hands.
The Toffees are said to be prioritising a midfield reshuffle after avoiding relegation to the Championship, as it is not clear what the future holds for Dele Alli, while Andre Gomes will officially become a free agent later this month.
A deal to bring Aston Villa's Tim Ireogbunam to Goodison Park is believed to be sealed, but Everton are still after a defensive midfield profile, and Phillips would fit the bill.
The former Leeds man was also left out of England's Euro 2024 squad on account of his poor season with Man City and West Ham, despite shining for his nation at the 2021 tournament.
Everton signing Phillips could help Arsenal's Onana chase
As well as Gomes and Alli's uncertainty, Amadou Onana is of interest to both Manchester United and Arsenal, the latter of whom have supposedly made contact with Everton to discuss a deal.
Everton would be looking for around £50m to let the Belgium international depart, which should not prove problematic for Arsenal, but they could even lower their demands if Phillips arrives.
While Man City are now reluctant to sell any more of their players to Arsenal after Gabriel Jesus and Oleksandr Zinchenko's initial success, they could still help the Gunners' chase for Onana by shaking hands with Everton on a deal for Phillips.