Phillips has failed to break into the City starting side since his £45m move from Leeds two years ago.

He joined West Ham on loan for the second half of last season in an effort to secure an England spot for Euro 2024 but a combination of poor form and injury wrecked his chances of making Gareth Southgate’s squad.

The loan deal does not include a sale option.

Although City manager Pep Guardiola spoke highly of the 28-year-old during the club’s pre-season tour of the United States, he was left on the bench for Saturday’s Community Shield success against Manchester United, even though star midfielder Rodri was not involved.

A number of clubs, including Fulham, were interested in signing Phillips but Ipswich appear to have won the chase, with the deal expected to be completed by Friday morning.