The 26-year-old is currently on international duty with England but limped off injured in Tuesday’s 1-1 draw against Germany.
Pep Guardiola is looking for a replacement for Fernandinho who leaves the club later this month after nine years at the Etihad Stadium.
City have sent scouts to watch Phillips on multiple occasions and believe the Leeds man possesses the attributes to enhance their midfield.
Phillips is contracted at Elland Road until 2024 and last month was quizzed on a possible move away from his boyhood club.
“I’ve made what I want to do clear. I’ve made my intentions clear. I want to be at Leeds and I’ll focus on that until my contract ends,” he told BBC Radio Leeds. “I’m not really worried about it (transfer speculation) too much. It’s always been something I’ve been confident about sorting whenever it needs sorting. Read more »