The Daily Star says Phelan is being lined up as a potential replacement for Chris Hughton at Norwich. Boss Hughton is under pressure after just one win in their last seven games.
And the Canaries are set to turn to former Manchester United coach Phelan if the axe falls.
The 51-year-old was right-hand man to Sir Alex Ferguson at Old Trafford for 12 years.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball