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The Star add that Phillips would prefer to join Liverpool if he decides to leave West Yorkshire and they show a similar level of interest as United.
He holds concerns over how a move to the Red Devils would impact his family, who all reside in Leeds.
Such a stance gives Liverpool an advantage over their bitter rivals, while Leeds are still pushing hard to tie Phillips down to a lucrative new contract.
His current deal runs until 2024, with negotiations underway between director of football Victor Orta and the player’s representatives.
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