Brendan Rodgers has identified the 26-year-old as the ideal player to help plug the gaps in his defence amid an injury headache.
Cameron Carter-Vickers, Maik Nawrocki, and Stephen Welsh are all out of action until at least mid-October.
Phillips made just seven appearances for Liverpool last season. Two in the Premier League, two in the EFL Cup, two in the Premier Reserve League, and one in the FA Cup.
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