The Premier League champions are expected to table a bid for the West Ham skipper on Thursday.
The news will come as a blow to Arsenal who had a club-record offer worth up to £90million turned down this week.
Arsenal had pinpointed Rice as their main target this summer, but the impending exit of City captain Ilkay Gundogan has put the European champions on red alert.
Former Crystal Palace owner Jordan believes Guardiola could use Phillips as a makeweight in any deal, a move that would benefit both City and West Ham.
Man City completed the signing of Phillips from Leeds on a six-year contract last summer for £45m, though the Yorkshireman has struggled ever since.
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"Do I think Declan Rice will be sold to Arsenal? I don't know… it depends who else comes in," Jordan told talkSPORT.
"There is a makeweight opportunity in this deal.
"What Kalvin Phillips says and what Pep Guardiola tells him might be two different things.
"If he says he wants to stay at Man City and Guardiola says, 'that's very commendable son, by you ain't playing', then his attitude will have to change.
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"There are a variety of ways this deal can be done, and if there's a situation where West Ham are prepared to let Declan Rice go in exchange for something in return…
"Suddenly you're doing a £75m deal with cash, plus you're taking Kalvin Phillips, and you're making it happen that way.
"That might not be the case, it might be unfair to put him [Phillips] in the equation.
"But West Ham are going to have a need, they're going to have to replace this player and Phillips might be the makeweight."
Rice has been the target of speculation over his future after failing to agree a new deal at the London Stadium.
He has 12 months left on his current deal and owner David Sullivan has confirmed he has likely already played his last game.