The 21-year is one of the biggest prospects in the Championship at the moment and it is believed that Royals boss Brian McDermott is keen to sign the young winger if Reading gain promotion the Premier League. He has made 40 appearances for Blackpool this season, scoring a very credible 17 goals in the process.
The deal reported for Phillips would be in the region of £1 million with possible add-ons. The former Slough boss tried to sign Phillips when he was at Wycombe three years ago, but Ian Holloway snapped up the pacey winger for a deal worth £350k from the Chairboys, rising to £700k.
Phillips is an England under 19 and under 20 international but has pledged his allegiance to Scotland. Scots boss Craig Levein called up the Buckinghamshire-born player to his squad in February, but injury prevented him from playing in their game against Slovenia.