After his £45M move from Leeds two years ago, Phillips has had a disastrous time at City and then an even worse time at West Ham United where he failed to make any impression.
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Now Ipswich want the 28-year-old on loan for the season as they look to build a team capable of staying up and away from the relegation zone.
Phillips was left on the bench for Saturday’s Community Shield success against Manchester United despite Rodri being absent.
It is unlikely that the midfielder would get any minutes if he was to stay at City so a loan move to Town could be a decision that transforms his career for the better.