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Man City standing by valuation of Kalvin Phillips - sources

Manchester City are standing by their valuation of Kalvin Phillips despite the midfielder's fear he could be priced out of a January move, sources have told ESPN.

Phillips is keen to leave the Etihad during the transfer window after struggling to break into Pep Guardiola's team.

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City have said he can move if they receive a suitable offer, but are asking for a loan fee of around £7 million ($8.9m) plus an obligation to make the move permanent in the summer.

Sources have told ESPN that talks with Juventus have stalled over the demands while Newcastle have also put off making an official approach.

A source has also told ESPN that City believe their valuation of Phillips is fair because, despite failing to get games under Guardiola, the 28-year-old is an established England international.

City are relaxed about the situation and are happy to keep Phillips as part of the squad until the summer. Amid speculation surrounding his future, Phillips, according to a source, has continued to work hard in training and is a popular member of the first-team group.

Phillips is hopeful City may reduce their demands closer to the transfer deadline on Feb. 1.

The former Leeds United man, who has only started twice this season, is desperate for regular games to ensure he keeps his place in the England squad ahead of the European Championships in Germany this summer. Gareth Southgate will name his last squad before the tournament in March for friendlies against Brazil and Belgium.

Phillips' prospects under Guardiola look bleak after failing to start a Premier League game this season even when Rodri, his direct competition in midfield, has been unavailable.

Newcastle remain the most likely destination for Phillips but speaking after the 3-2 defeat to City on Saturday, manager Eddie Howe admitted financial rules may prevent any new signings from arriving, even on loan.

"The disappointing thing for us is we have lost a lot of players from midfield and attack and our options are limited," Howe said. "I don't know [if Newcastle will make a signing]. I have no idea as we sit here now. It would be my intention to try."