The 26-year-old has had a struggling season due to injury problems, only playing 14 of a possible 32 top flight appearances.
However, Phillips’ performances over the last couple of years have brought a lot of attention to the England international, with a variety of clubs keeping tabs on him.
The Magpies are now interested in signing the midfielder this summer, and the Daily Mail reports that the Tyneside outfit are willing to provide him a significant pay rise in order to complete a deal.
Newcastle United are prepared to pay £125,000 per week, which would be an £87,000-a-week rise from what he is currently earning at Elland Road.
Phillips is under contract with the Yorkshire giants until 2024.