The English defender played 19 league games last campaign, helping the Reds qualify for the Champions League football for the fifth straight season. He also won Liverpool's Player of the Month accolade in March.
However, with the return of the Merseysiders' first-choice defenders from their respective long-term injuries and the signing of Ibrahima Konate from RB Leipzig, Phillips found himself down the pecking order once again.
He recently expressed his desire to play regular first-team football and could move away from Anfield in this transfer window. He was left out of the Reds' squad to face Osasuna for a pre-season game earlier this week, which further fueled exit rumors.
Nathaniel Phillips' transfer options
#3 Southampton FC
Vestergaard was one of the Saints' top performers last season and his departure will be a massive blow for the south-coast club. They are currently looking for his replacement, with Liverpool's Nat Phillips among the top names on their list.
Phillips is a player in the same mold as Vestegaard, with both being very strong in the air. Phillips won 5.6 headers per game last season compared to Vestegaard's 3.3. Like Vestegaard, the Liverpool defender is also a good passer of the ball and completed 950 passes last season with an accuracy of 84.2.
At 24, Phillips still has the potential to improve in the future and could prove to be a perfect replacement for Jannik Vestegaard at St. Mary's Stadium.