Despite costing £45m when joining from Leeds United in 2022, Phillips has rarely been provided with opportunities by Pep Guardiola.
Just six of his 31 appearances in all competitions have come from the starting lineup, and Guardiola recently admitted that the situation is unlikely to change in Phillips’s favour.
As a result, the England international has been heavily linked with a wide array of clubs, all aware that the 28-year-old is desperate for first-team football ahead of Euro 2024.
However, the stumbling block put in front of the teams in question has been City’s desire to include an obligation to buy in any loan proposal.
That subsequently ruled out the likes of Newcastle United, who are struggling to meet FFP regulations, and foreign teams such as Juventus and Barcelona.
Nevertheless, West Ham have remained persistent in their admiration of Phillips, with David Moyes having wanted to sign the player before he moved to the Etihad Stadium.
According to David Ornstein of The Athletic, the Hammers hierarchy have now made the breakthrough with their City counterparts over a loan deal for the rest of the season.
The report claims that West Ham will be covering Phillips’s salary in full, as well as paying a substantial loan fee in the process.
Transfer expert Fabrizio Romano adds that the East Londoners will also possess the option to sign Phillips on a permanent basis in the summer, albeit that not counting as a mandatory clause.
A medical is expected to be undertaken in due course with West Ham having time for that to be completed and register Phillips before their next Premier League game.
Having been eliminated from the FA Cup, West Ham are not back in action until February 1, when they play host to Bournemouth at the London Stadium.
With Phillips last completing 90 minutes on December 13 and not making an appearance in any form since December 19, Moyes may keep him in reserve for the early part of his time in the capital.
