Manchester City and Sheffield United have reportedly reached an agreement for midfielder Kalvin Phillips to join the Blades on a new loan deal.
The 30-year-old struggled to establish himself under former manager Pep Guardiola after his high-profile £42.5m switch from Leeds United in the summer of 2022, and he has now seemingly been deemed surplus to requirements by Enzo Maresca.
After a move to spend the second half of last season on loan at Bramall Lane was cut short, Phillips is now set to return to the Yorkshire club for the 2026-27 campaign.
The proposed transfer is essentially finalised, and the player is now just waiting to complete his mandatory medical examinations before the move is officially confirmed.
'Verbal agreement' reached for Phillips loan
According to transfer expert Fabrizio Romano, the two clubs have struck a deal that will see the England international leave the Etihad Stadium on loan for a fourth time.
Phillips previously joined Chris Wilder's side on a temporary basis in February 2026, but his stint was severely restricted by a red card in only his third appearance against Sheffield Wednesday in February and a subsequent knee injury.
The Yorkshireman managed just three appearances during that disappointing spell before returning to Manchester to focus on his rehabilitation.
Now, Sheffield United have moved swiftly to bring the experienced defensive midfielder back into their ranks to bolster their options in the middle of the park.
Why are Man City allowing Phillips to leave?
Since arriving at Man City, Phillips has only started five Premier League matches and is significantly behind in the pecking order at the Etihad Stadium.
The 30-year-old has previously had largely frustrating loan spells at West Ham United and Ipswich Town in a desperate bid to secure regular first-team minutes.
Guardiola consistently opted to select alternative midfielders, making it abundantly clear that the former Leeds talisman did not fit into his side.
Even with Rodri's future at the club undecided, Bernardo Silva now at Real Madrid and the Citizens short on sufficient experience in that area of the pitch outside Mateo Kovacic, Tijjani Reijnders - whose future is uncertain - the unconvincing Nico Gonzalez and big-money arrival Elliot Anderson, Phillips is still considered persona non grata by new boss Maresca.
With two years still remaining on his current contract, another temporary departure represents the most logical solution as Phillips desperately seeks to revive his stalled career.