Kalvin Phillips transfer twist as former Leeds United star's future becomes clear

Newcastle United have pulled out of the race for Kalvin Phillips but reports suggest a Premier League move could still be on the cards for the former Leeds United man this month.

Phillips has long looked set to leave Manchester City in January with regular football hard to come by. The 28-year-old is Rodri's direct replacement in defensive midfield but even in the Spaniard's absence, Pep Guardiola has found alternative options.

Guardiola publicly apologised to Phillips in December, admitting he 'struggles to see' the former Whites man in his starting line-up. A loan exit has been tipped this month and St James' Park was the expected destination, but The Telegraph now reports that Newcastle have called the deal off as they are unwilling to meet City's demands.

Those in charge at the Etihad are said to be demanding a £7million loan fee, which is unusually large for a five-month deal. They also want all of Phillips' £135,000-per-week wages covered and a £40m obligation to buy in the summer - which alongside the loan fee would ensure they make a slight profit on the £42m sent to Leeds in 2022.

But as one door closes, Sky Sports reports that three more have opened with Everton, Crystal Palace and West Ham joining long-time admirers Juventus. Premier League interest is most likely to prove successful due to the financial demands of City.

On the face of it, Goodison Park seems an unlikely destination, given the financial issues Everton are facing. They were referred to an independent commission on Monday after admitting to spending breaches for a second time, following their 10-point deduction earlier this season.

West Ham are also admirers of Phillips but would struggle to cover all of his wages, and already have a regular defensive midfielder in £35m summer signing Edson Alvarez.

Crystal Palace could be in the market for midfield reinforcements this month, with first-choice option Cheick Doucoure out for the season. They could offer Phillips regular football at Selhurst Park, which will be crucial ahead of this summer's European Championships in Germany. Phillips has remained a key part of Gareth Southgate's squad despite a lack of regular football at club level, but the England boss has hinted that he may be forced to make some tough decisions if alternative options are playing regularly and playing well.