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The England international is on the market this month and City would prefer to sell - but a loan move has not yet been ruled out.
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They would want a loan fee - thought to be around £5m - and most, if not all, of his £135,000-per-week wages paid in full.
Several of these clubs are believed to have made initial approaches to City to register their interest.
However, it remains to be seen what kind of deal they are prepared to offer, with nothing formal having yet been submitted to the champions.
Newcastle have been tipped as a credible destination as they are looking for a loan player to cover the suspended Sandro Tonali and Phillips is high on their list.
However, both chief executive Darren Eales and manager Eddie Howe warned last week that they are at the apex of spending within profitability and sustainability regulations (PSR).
West Ham also have a long-standing interest in Phillips but it is thought his wages may prove a stumbling block for any potential deal.
Everton, meanwhile, cannot buy players nor pay a loan fee unless they sell someone due to their severe ongoing financial problems.
Juventus remain keen, meanwhile, and have held initial talks with City - even though manager Max Allegri would prefer a slightly different profile of player.
They also have other current and former Premier League options they like such as Pierre-Emile Hojbjerg, Jordan Henderson and Nottingham Forest's Orel Mangala.
City boss Pep Guardiola admitted in December that Phillips can go for regular games, having made only four Premier League appearances this term.
Follow the January transfer window with Sky Sports
Who will be on the move in the January window?
Opening on January 1 and closing at 11pm on February 1 in England and midnight in Scotland, keep up to date with all the latest transfer news and rumours in our dedicated Transfer Centre blog on Sky Sports' digital platforms.
You can also catch up with the ins, outs and analysis on Sky Sports News, including daily transfer shows, and listen to our dedicated Transfer Talk podcast.