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The Reds have already lost Trent Alexander-Arnold to Real Madrid, and Jarell Quansah is heading to Bayer Leverkusen as part of the major defensive reshuffle overseen by manager Arne Slot.
While Alexander-Arnold and Quansah would have been part of Slot's first-team plans if they stayed at Anfield next season, Phillips' exit may not have quite the same impact.
Phillips spent last term on loan at Derby County and he now looks set for a Championship return.
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According to The Telegraph, West Bromwich Albion are close to signing him on a permanent deal.
Liverpool chiefs faced the prospect of finding Phillips another loan destination this season as he still has a year to run on his contract.
But a move to the Hawthorns is set to see them bank a small fee 12 months before he would have been a free agent.
It would also give Anfield bosses the freedom to focus on other transfer priorities in what has already been a busy summer.
Jeremie Frimpong has been signed to replace Alexander-Arnold at right-back, with Milos Kerkez expected to replace Andy Robertson on the left once he completes a £40million move from Bournemouth.
Nat Phillips spent last season on loan at Derby County (Image: Getty)
As Quansah heads for the Bundesliga in a £35m deal, Liverpool have been tipped to bid for Crystal Palace centre-back Marc Guehi.
He enjoyed loan spells with Stuttgart, Bournemouth, Celtic and Cardiff City before joining up with the Rams last term.
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Fans will hope for a fresh promotion push if Phillips comes on board to join newly-appointed manager Ryan Mason in the West Midlands.
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