The report claims the Reds boss entertained the notion of allowing the 23-year-old to join the Championship club in order to further his development.
Ultimately Klopp opted to retain the centre-back, owing to the sheer weight of injuries suffered in the position this season.
Having lost Virgil van Dijk and Joe Gomez for a large portion of the campaign earlier in the season, the Reds were handed another crushing blow in January when Joel Matip was ruled out for the remainder.
It was the loss of Matip that triggered Liverpool to sign Ozan Kabak and Ben Davies on deadline day; albeit the latter is yet to appear for the club.
Despite the double arrival, Phillips has continued to deputise at the back and put in a superb account of himself alongside Kabak this week as Klopp’s side overcame RB Leipzig – justifying the decision to reject the loan approach.
In more normal circumstances, considering, or allowing Phillips to leave on loan in January would’ve made perfect sense.
However, already down to the bare bones defensively, had the Bolton-born ‘monster’ left, there would’ve been uproar.
Thankfully, Klopp and co saw sense to keep hold of Phillips and have since been rewarded.
What happens next season is perhaps most intriguing, having discovered the long-term nature of his contract, it’ll be interesting to see whether Klopp sees Phillips as part of his first-team plans next season.