Sheffield United are in advanced talks with Manchester City over a new deal to sign Kalvin Phillips, sources have told Football Insider.
The two clubs are working on finalising another loan deal.
Phillips, 30, spent the second half of last season with the Blades, but made just four appearances across all competitions after he was ruled out with a knee injury.
Chris Wilder has given the green light to sign the midfielder once again, however, as he looks to get his side up the Championship table.
Phillips remains under contract at Man City until 2028, and still has made just 32 appearances for the club since his £42million switch from Leeds United four years ago.
The former England international is among several potential departures at the Etihad Stadium this summer, along with Jack Grealish and Nathan Ake.
John Stones has already left the club on a free transfer, and will look for a new opportunity following the World Cup.
Kalvin Phillips looking to rediscover Championship form
When Phillips arrived at Man City in 2022, he was among the Premier League’s most highly rated young midfielders.
The Leeds academy product had already suffered from injuries, but it was hoped that his quality would shine through for the Premier League champions.
But in his first season, a shoulder injury would keep Phillips out for three months and he would make just 12 Premier League appearances.
In his second season, Pep Guardiola appeared to have lost all faith in him, and the midfielder was shipped out to West Ham, where he failed to impress.
Subsequent loans have led him to Sheffield United, where the lasting impression from his first loan was a red card in the Steel City derby.
Yet the Blades appear to be hoping that an injury-free campaign may see Phillips rediscover the superb Championship form that put him on the map in the early stages of his career.
Phillips has already confirmed Sheffield United desire
Phillips once had huge international prospects, and starred for England alongside Declan Rice at the European Championship in 2021.
There is little doubting that injuries have ruined a very promising career, but there is still football to be played for the 30-year-old.
“I’m a person who works hard and never gives up on what I believe I can do,” he told Sky Sports in February. “I just need to play football to get back to my former self. Once I get up and firing, I’ll feel a lot better and a lot more confident.
“Any player in my situation would say not playing has been the major reason for a dip. So many players have stayed at clubs for so long without playing, and their careers have fizzled out. I didn’t want that to happen.
“I still feel like I’ve got life in me and a lot of football to play. I’m looking forward to the next three or four years.”
