Two Premier League sides remain in race to sign Man City midfielder Kalvin Phillips on loan

Newcastle United and Crystal Palace remain interested in signing Kalvin Phillips on loan this January, and are the most likely destinations for the midfielder if he leaves Manchester City in the current transfer window.

The 28-year-old is free to depart the champions this month if an acceptable offer is presented to City, although one has not yet been forthcoming.

Juventus were in the driving seat prior to January but have withdrawn their interest, meaning a mid-season departure from the Premier League looks unlikely. Tottenham Hotspur had been credited with an interest over the weekend, but ManchesterWorld understands that the North London club are not pursuing a deal.

Newcastle are keen on Phillips, with manager Eddie Howe known to be an admirer of the ex-Leeds United man. But finances are an issue for the Magpies after they announced an after-tax loss of £73.4m last week, with club CEO Darren Eales claiming Newcastle could be forced to sell key players in order to comply with Financial Fair Play regulations.

As for Palace, they might be without midfielder Cheick Doucoure for the remainder of the season, and are keen to strengthen in that area in January. However, ManchesterWorld understands the Eagles are yet to submit a formal offer for Phillips.

While several Premier League clubs are thought to be monitoring the England international’s situation, Newcastle and Palace are the only sides believed to be actively pursuing him at this stage.

Phillips openly admitted in October that he may need to leave City this window if he is to maintain his place in Gareth Southgate’s squad, and the Yorkshireman has started just two games all season for City: an EFL Cup third-round tie and dead rubber in the Champions League.

Manager Pep Guardiola is open to letting Phillips leave and has been asked about the player's future on several occasions in recent weeks. “The transfer market, I said many times, I don’t know,” the City boss said on 5 January.

“Txiki [Begiristain] is there and what is going to happen will happen. I’m not going to anticipate anything here because I don’t know the desires of the players. Some of them I know and some I don’t know.”