Steve McClaren has already brought in Jonjo Shelvey from Swansea City and Henri Saivet from Bordeaux in the current transfer window, but he is keen to strengthen his squad even further.
McClaren wants a striker and a winger in January and Tottenham Hotspur’s Andros Townsend is said to be his first choice target.
However, Spurs are asking for £14 million for the England international and they are refusing to budge on the price.
Tottenham are determined not to lose Townsend on the cheap, and they have shown little willingness to negotiate with Newcastle.
As a result, the Magpies could look at cheaper alternatives and Phillips is on their list of back-up tagets.
QPR are believed to be willing to cash in on the wide man, and Newcastle feel his transfer could offer better value for money than Townsend’s even if he would be slightly less of a headline capture.