Phillips reluctant to head to Rangers
Rangers' manager Alex McLeish is looking for high-calibre recruits to turn the club's fortunes around next season following a campaign that ended without a single trophy.
Striker Dado Prso has already pledged to join after playing for Monaco in the Champions League final and for Croatia in the Euro 2004 finals.
Likewise, France defender Jean-Alain Boumsong is also weeks away from beginning his Rangers career.
McLeish who has known the new Saints boss Paul Sturrock for years is a known admirer of Phillips, who netted 30 goals for Sunderland in 1999-2000, though he has been less prolific at the Dell.
It has been suggested the 30-year-old is now valued at around the £1.5million mark a fee Rangers could easily afford despite their massive debts.