The 39-year old has followed former Seasiders boss Ian Holloway to South London where he will look to help guide the Eagles into the Premier League.
"Blackpool were approached three or four weeks ago about a club taking me on loan and the club let me know I was available to go," Phillips said.
"I spoke to my agent and then I had a conversation with Ian Holloway and then in the last 24 hours it's picked up again and he's someone I know well.
"We obviously got on really well at Blackpool. He brought me in at a time when not too many people were looking for someone for my age.
"I repaid him with 17 goals and helping them to the play-offs so it was a gamble that paid off. I think I can still do a job, he knows that and that's one of the reasons he's brought me to the football club."