Phillips, 28, departed Leeds for Manchester City during the summer window of 2022.
Phillips eventually accepted that he had no future with the treble winners. A six-month loan deal with West Ham was completed last month.
Phillips has struggled to catch up since returning to the Hammers’ regular lineup. Costly errors were made, and the England international was sent out in the 2-0 defeat to Nottingham Forest.
There was widespread disagreement about whether West Ham included a buyout option in Phillips’ loan agreement. David Ornstein stated that no such option exists, but Fabrizio Romano was convinced that one had been inserted.
Nonetheless, given the player’s dismal early form, David Moyes and company may be hesitant to sign Phillips outright.
To begin, it has been stressed that a deal will only be made if Leeds is promoted back to the Premier League.
Daniel Farke’s squad is presently in second place following a 3-1 victory over table-toppers Leicester City on Friday night.
FI adds that if Phillips is promoted, Leeds will be interested in him, and City are willing to cut links once and for all.
West Ham are also considered ‘likely’ to be in the running, however a return to his boyhood club would undoubtedly appeal more to the player.
Phillips is still highly regarded in west Yorkshire and returning home while still theoretically in his prime years could represent a fantastic coup for the club.
The obvious issue of his high salary – believed to be around £135,000-a-week – is noted as the biggest barrier to a deal.
As a result, Leeds may be reliant on Phillips’ willingness to accept a significant pay reduction before a return can take shape.