The Bosnian has been prolific in both the German Bundesliga and Europe in the past two seasons and Phelan says there would be plenty of clubs after his services because of the type of player he is.
"I'm sure there are a number of teams looking at him," Phelan said.
"Are we one of them? We are looking at talent all of the time and we are in there with the rest of them.
"He showed his threat in the game at Old Trafford and he appeals because he is a tall, skilful boy and in some ways he is an ideal player for the English league.
"He has stature, his feet are good and he is producing some good performances. I am sure everybody has looked at him."