Phillips joined Man City from boyhood club Leeds United back in 2022 but has only made 32 appearances across all competitions for Pep Guardiola’s side.
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The midfielder failed to secure a move away last summer having had an unsuccessful loan at Ipswich but did feature for seven minutes in their League Cup win over Huddersfield earlier in the season.
According to a report from the Daily Mail, relegation candidates Wolves are looking to offer Phillips a chance to revive his career.
It’s understood that Rob Edwards’ side are preparing for life without Joao Gomes and Andre, who have both attracted interest from elsewhere.