He went on to establish himself as an England international, featuring in their run to the European Championship final last year.
Phillips would become City’s second major addition since the end of last season after the arrival of Borussia Dortmund’s Norway striker Erling Haaland.
Meanwhile, City academy midfielder Darko Gyabi will move to Leeds for around £5 million.
The deal for Gyabi, an 18-year-old England Under-18 international who joined City from Millwall four years ago, has been negotiated independently of the Phillips move.
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