The England midfielder has agreed a move to the capital club until the end of the season, and West Ham will also have an option to buy Phillips once the loan deal is over.

The loan deal will be likely announced late on Friday (AEDT).

Phillips joined City from Leeds United for £45 million ($87 million) on a six-year contract in July 2022.

But the 28-year-old has never managed to hold down a regular spot in Pep Guardiola’s side and has not started a single Premier League match this season.

Crystal Palace and Newcastle United were also interested in Phillips but he has opted for the Hammers, who are currently sixth in the table and in the Round of 16 of the UEFA Europa League.

Phillips knows he needs game time with UEFA Euro 2024 coming up this summer.

City boss Guardiola admits he feels responsible for Phillips’s lack of game time and hopes he sees more action with the Hammers.

Guardiola said: “Hopefully he can play the minutes he deserves and I couldn’t give to him.

“I wish him well. I’ve said many times, he’s an exceptional human being and a football player, otherwise he wouldn’t be in the national team. Hopefully he can prove what he really is.

“Of course, if I give him 10 to 15 games in a row he would be good, but I didn’t give them to him and I feel so responsible for that.

“But, at the same time, I am honest with myself. I have players at my disposal, a squad, and I have to decide what we are looking for.

“All I can say is I am so grateful for his behaviour on and off the pitch and hopefully he can find minutes, and next season we will see what happens.”

Hammers boss David Moyes is also looking to offload players with Algeria winger Said Benrahma likely to leave before the transfer window closes.

Ajax’s Steven Bergwijn is a potential replacement for Benrahma with Moyes keen to build on West Ham’s strong first half of the season.