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Phillips broke through from the Reds' academy to become a key man in the 2020/2021 campaign.
His performances with Virgil van Dijk, Joel Matip and Joe Gomez all sidelined helped Liverpool secure qualification to the Champions League.
They would then reach the final of that competition a year later.
Despite those displays, Phillips has struggled for gametime at the Premier League champions ever since.
That deal for him to move to the Hawthorns is gathering pace.
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According to The Athletic, Phillips is undergoing a medical on Monday with the Baggies.
It is expected that Phillips will join his new club in time to link up with the Baggies for the start of pre-season later this week.
The 28-year-old made 33 appearances for Derby as they secured survival in the second tier.
Meanwhile, West Brom endured a disappointing season to only finish ninth, four points adrift of a play-off place.
Nat Phillips was a key man for the Reds in the 2020/2021 season(Image: Getty Images)
Phillps' move ends a mixed time on Merseyside for the centre-back.
He made his debut against Everton in the FA Cup in January 2020, and received major praise from Klopp for his role in securing Champions League qualification a year later.
“I messaged Rhys Williams and Nat Phillips because we wouldn’t be there without them," Klopp told Sky Sports News in 2022.
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