Manchester City are willing to consider terminating the contract of one of their midfielders in order to facilitate a free transfer exit at the end of the season, according to reports, as the club continues plans to reshape its squad.
Kalvin Phillips has found opportunities limited since his move from Leeds United to Manchester City in 2022, despite arriving on the back of an impressive campaign at Elland Road.
What was expected to be a significant step forward in his career has instead proven difficult, with injuries and competition for places restricting his impact at the Etihad Stadium.
Phillips struggled with fitness issues during his first season in Manchester and was largely absent from first-team action. His involvement only increased midway through the following campaign, when he secured a temporary move to West Ham United. However, that spell failed to result in a permanent switch.
City then opted to send the midfielder out on another loan, this time to Ipswich Town, in an effort to revive his fortunes.
Instead, the move brought further challenges, with the club suffering relegation and Phillips returning with an Achilles problem.
That injury setback disrupted any immediate plans for another move away, leaving him with only a brief appearance for City — seven minutes as a substitute in a Carabao Cup victory over Huddersfield Town in September 2025.
A short-term solution arrived in January when Phillips joined Sheffield United on loan. Yet even there, difficulties persisted.
His time was interrupted by a knee injury sustained in a match against Sheffield Wednesday, a game in which he was also dismissed.
Following a minor surgical procedure, Phillips is expected to return after the international break as he attempts to end the season on a more positive note. However, his long-term future remains uncertain.
Despite being tied to City until 2028, the midfielder’s situation appears increasingly unresolved. Reports suggest the club are now prepared to take the unusual step of ending his contract early — effectively choosing to “tear up” the agreement — to allow him to move on without a transfer fee.
Manchester City’s rebuild gathers pace
The potential decision comes as part of a broader restructuring of Pep Guardiola’s squad ahead of the next campaign.
Manchester City are understood to be targeting reinforcements in midfield, with a particular focus on bringing in top-level quality.
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Among the names linked are Elliot Anderson of Nottingham Forest and Sandro Tonali of Newcastle United, both seen as players capable of strengthening options in the centre of the pitch.
Allowing Phillips to leave on a free transfer would not only reduce the wage bill but also open space for new arrivals as City seek to refresh an already successful squad.
Phillips may not be the only high-profile exit. The club are reportedly preparing for a number of significant changes, with several established players linked with moves away.
Captain Bernardo Silva is among those whose future remains uncertain, alongside defenders John Stones, Nathan Aké and Manuel Akanji. In midfield and attack, Mateo Kovačić and Jack Grealish have also been mentioned as possible departures.
Such changes would mark a significant transition period for the club, who have dominated English football in recent years but are now looking to evolve once again.
