The 28-year-old is searching for regular first-team minutes in the Premier League, a luxury that he has been robbed of since swapping Leeds United for the Citizens during the summer window of 2022.
Phillips has been criticised for his inability to play in small spaces and weight by Man City boss Pep Guardiola, who is not including the midfielder in the first-team plans at the Etihad.
That being said, the former Leeds enforcer featured four times for the Citizens during pre-season, however he was often operating out of position at centre-back in the absence of Ruben Dias and Manuel Akanji.
Over a troubling two-year stint on the blue side of Manchester, Phillips has featured in 31 matches for the Premier League holders, scoring once.
Ipswich 'agree' deal for Man City midfielder Phillips
According to transfer specialist Fabrizio Romano, out-of-favour Man City midfielder Phillips is set to receive another Premier League lifeline before the conclusion of the summer window.
The report states that Ipswich and the Citizens have agreed a season-long loan move for the 28-year-old to Portman Road, where the Tractor Boys will take to the top-flight stage for the first time in two decades.
It is understood that Phillips is scheduled to complete a medical in East Anglia on Thursday afternoon ahead of a move to Kieran McKenna's side.
There is supposedly no option or obligation for Ipswich to buy the midfielder following the end of the loan, a smart financial move from the Tractor Boys, who could be operating as a Championship club in less than a year.
Phillips is set to become Ipswich's maiden midfield signing of the summer and their first since the temporary acquisition of Blackburn Rovers man Lewis Travis during the January window.
Can Phillips return to former glories at Ipswich?
Following his impressive displays in the engine room of Gareth Southgate's England team at Euro 2020, Phillips was voted as the Three Lions' Player of the Year for 2021.
Fastforward over two years and the 28-year-old is taking a loan move to a recently-promoted club in an attempt to reignite a career that has gone off track.
Phillips will be hoping his stay at Portman Road will be more fruitful than his time at the London Stadium for West Ham United earlier in 2024.
The ex-Leeds midfielder struggled to win over fans with his displays on the pitch, meaning that there was little chance of a permanent switch to the capital this summer.