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Phillips completed his switch to the Premier League champions this week in a deal worth £42 million, with a potential £3 million in add-ons.
The England international penned a long-term deal with the Citizens until June 2028, becoming their fourth arrival of the window after they signed Erling Haaland, Julian Alvarez and Stefan Ortega.
City are also understood to be pursuing Brighton left-back Marc Cucurella as they look to complete their summer business early.
Phillips began his professional career at the Yorkshire side, making his debut at just 19-years-old, before helping them to promotion to the Premier League in the 2019/20 season under Marcelo Bielsa.
He was a key part in the Whites’ squad as they finished 9th in their first season back in the top flight, and this form earned him a place in England’s Euro 2020 squad, of which he also played a prominent role.
The 26-year-old, however, struggled with fitness injuries in the duration of the 2021/22 campaign, missing three months after suffering a hamstring injury back in December.
But he recovered from this set-back to feature in all of Leeds’ final eight games as they managed to maintain their Premier League status.
This earned him his big-money move to the reigning champions.
According to National News Sport, Liverpool passed up the opportunity to sign Phillps earlier this month.
The Leeds-born man was available in what has been described as an ‘easy’ transfer to complete, but the Reds rejected the chance to sign him.
Jurgen Klopp also supposedly had the opportunity to bring in both Yves Bissouma from Brighton and Youri Tielemans from Leicester, but also turned down both players.
It’s understood that Klopp is looking to rebuild his midfield department in the summer of 2023, and instead used the resources available to him to re-sign Mohamed Salah to a new contract.
The Egypt international has put pen to paper on a deal worth £350,000, and it’s believed that Phillips’ salary would’ve prevented the Merseyside club from offering Salah the wages they did.