That’s according to a report from The National News, who say that the club have an alternative target they want to sign in next summer’s transfer window.
It looks as though Phillips could be on the move from Elland Road this summer, with Manchester City heavily linked with the England international.
The Premier League champions are apparently keen to complete a deal for the midfielder before their pre-season tour of America next month.
However, it seems things could have been rather different this summer, with this latest report claiming that Liverpool saw Phillips as an easy signing for them to make.
Ultimately though, the Merseyside club apparently elected not to pursue that opportunity, or moves for Brighton’s Yves Bissouma and Leicester’s Youri Tielemans.
That is down to the fact that it is thought Jurgen Klopp’s side would prefer to bring Borussia Dortmund’s Jude Bellingham to Anfield, in a deal that will wait until next summer.
This is an interesting stance for Liverpool to take on their midfielder situation.
It does seem as though Klopp’s men could benefit from some reinforcement in the centre of the park, and Phillips would undoubtedly have done a job for them in that position.
Of course, Bellingham will certainly do that as well, but if they are not moving for him until next summer, you do wonder what that might mean for their prospects in the coming campaign.
That could make this call something of a risk in the short term, especially with the impact Phillips could make for their closest title rivals, if he does make the move to City.