£97m Leeds United January reunion claim as new clubs enter race for Newcastle United transfer target

Manchester City midfielder Kalvin Phillips is set to leave the club on loan this January transfer window, but his destination remains unknown.

Newcastle were once understood to be the front-runners to sign the 28-year-old England international but have since distanced themselves from the deal due to Man City's significant loan fee demands. West Ham United and Crystal Palace have also been linked with Palace boss Roy Hodgson publicly declaring his interest in signing Phillips on loan.

The former Leeds United midfielder has also been linked with a move abroad with Juventus recently withdrawing their interest. But a move to Europe could still be on the cards with La Liga giants Atletico Madrid and Barcelona now reportedly looking at the midfielder, according to The Telegraph.

A move to Barca would mean a reunion for Phillips with his former Leeds team-mate Raphinha. The pair played two seasons together in the Premier League at Leeds before joining Man City and Barcelona for £42million and £55million respectively.

Phillips is keen to leave City this month in a bid to secure his place in the England squad for the upcoming European Championships in Germany this summer. Phillips has earned 31 caps for England but has started just two Premier League matches since arriving at Man City in the summer of 2022.

Newcastle are keen to bolster their midfield options with Phillips a top target. Atalanta midfielder Ederson has also been scouted by the club but deals will be difficult for both players this month due to Financial Fair Play restrictions.