The agreement is anticipated to be finalized the following week, with City paying £42 million-plus a further £3 million in add-ons for the 26-year-old who is presently on vacation. Phillips should make about £155,000 every week, on average.
Darko Gyabi, a midfielder for City Academy, has also secured a separate deal to move the other way.
Now, personal terms must be agreed upon in order to close the deals.
After the arrivals of forwards Erling Haaland and Julian Alvarez, Phillips would become the City’s third significant addition of the summer.
After the long-serving Fernandinho left at the end of the previous season, City turned to Phillips to strengthen their midfield.
Phillips, who joined Leeds as a young player, was crucial to the club’s return back to the top flight two years ago.
He later established himself as an England international and in the Premier League.
Gyabi, an 18-year-old England Under-18 international who joined City four years ago from Millwall, has a deal that was separately negotiated.