The England international has been heavily linked with a move away from Elland Road, but Talbot says the Whites have given the impression that he will sign an extension after they managed to avoid relegation.
What is the latest news involving Phillips?
With Fernandinho departing the Etihad when his contract expires next month, the Premier League champions are on the lookout for a new defensive midfielder. And it seems the 26-year-old is the man they have identified to replace their captain.
Phillips missed a lot of games this season due to injury, starting just 18 times in the top flight for Leeds. However, he clearly did enough at the Euros and the campaign before to impress Pep Guardiola.
As well as City, Aston Villa, Newcastle United and West Ham are also thought to be interested in signing Phillips in the upcoming transfer window.
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What has Talbot said about Phillips’ Leeds future?
Talbot has told GIVEMESPORT that Leeds have always given the impression that Phillips would sign a new contract at Elland Road as long as they stayed up.
Speaking to GMS, the journalist said: “With Kalvin Phillips, Leeds have always said to me that he will be signing a contract at the end of the summer.
“It was implied that would be [the case] if they survived in the Premier League and they have survived, so you kind of think Kalvin Phillips would be signing the contract.”
Will Phillips sign a new contract at Leeds?
However, that was before the talk of City making him one of their top targets for the summer.
If the Premier League champions do go on to make a serious offer for Phillips, it is probably going to be hard for him to say no.
The chance to compete for the title and play in the Champions League may be an opportunity that is too good to turn down.
Ultimately, whether Phillips puts pen to paper on a new deal could depend on what teams come in for him in the upcoming window. If City do indeed turn out to be one, then it is hard to see anything but an Elland Road exit.