Holloway admitted Phillips had been the subject of a £5million bid from Premier League Southampton.
"I just want to keep the players I have here now," he said.
"What we do we do together. We had a meeting about the Matt Phillips situation yesterday.
"The situation was so public I couldn't lie to my players and tell them otherwise. He has handed in a transfer request but that means nothing.
"They [Southampton] have offered £5 million but we don't need the money. So what can they do? The player is on a contract and he's signed it.
"The lad [Phillips] is very disappointed and he is very stubborn and he didn't feel he could play today."