Sheffield United are in advanced negotiations with Manchester City over a new loan deal for midfielder Kalvin Phillips, according to a new report. Phillips has endured a difficult period since his £45m move to the Etihad Stadium from Leeds United in the summer of 2022, having made just a handful of appearances for the club over three seasons as injuries and a lack of form limited his involvement under Pep Guardiola.
The 30-year-old spent the second half of last season at Bramall Lane and, despite being mostly inactive at Sheffield, it is understood he impressed enough for the Championship club to explore the possibility of bringing him back to south Yorkshire for another campaign. According to journalist Pete O’Rourke, Sheffield United are in advanced talks with Manchester City to secure another loan deal for Phillips ahead of the 2025-26 season.
The report suggests that discussions between the two clubs have progressed to an advanced stage, with a second temporary agreement being the simplest outcome for both parties given the lack of a clear path to regular first-team football at the Etihad Stadium. City's director of football Hugo Viana is focused on a significant rebuild of the squad around new manager Enzo Maresca – and a new loan for Phillips would free up both wages and a place in the squad as the club navigates one of its most active transfer windows in recent memory.
Phillips' City career has never regained the momentum that made him one of England's most sought-after midfielders during his time at Leeds United – and his long-term future at the Etihad Stadium remains uncertain as the final year of his contract approaches. A second loan spell at Sheffield United would offer the 30-year-old the opportunity to play consistently in the Championship and rebuild his confidence and form, ahead of what is likely to be a defining period for his career – whether that concludes with a permanent exit from City or an unlikely return to contention under Maresca. It remains to be seen whether the reported advanced talks will translate into a formal agreement in the coming days – but the direction of travel for both club and player, who is under contract at the Etihad Stadium until the summer of 2028, appears clear.