The center half was first linked to Brighton as a possible replacement for Ben White, who is Arsenal-bound.
Per Sky Sports, the Hammers are very keen to bring Phillips to London, with manager David Moyes on the hunt for a new center half.
The 24-year-old Phillips would fit the mold of what Moyes wants from a defender, given his stature and aerial presence.
Per the Liverpool Echo, the Reds would be happy to sell Phillips for roughly £10 million this summer.
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