Phillips has again been a bit part player at Manchester City this season and is prepared to leave in the winter window for more opportunities to play.
Juventus are interested in signing the player on loan, but are not prepared to include an obligation to buy in the agreement.
Manchester City are prepared to listen to loan offers for Phillips and Newcastle United are also interested in the midfielder.
But according to Italian outlet TuttoJuve, Newcastle are facing a key challenge to convince Manchester City to accept a loan offer with no obligation to buy.
The Magpies did not budget for a midfielder in January and are also facing financial fair play restrictions.
However, Eddie Howe needs a midfielder following Sandro Tonali’s ban and Phillips is the player he wants.
Manchester City are likely not inclined to loan him out to another Premier League with no obligation to buy.
It remains to be seen whether Newcastle dig deep to fund a move for the England midfielder in the winter window.
