Since joining from Leeds United last summer for £45m, Phillips has barely featured for Pep Guardiola's treble winners.
The 27-year-old struggled with injuries in his first season at the Etihad Stadium and only made 21 appearances across all competitions.
This term, Phillips has played five times for the champions but was left on the bench for the 1-0 defeat at Arsenal prior to the international break despite Rodri's unavailability due to a red card.
Nonetheless, Phillips continues to be selected for England duty by Gareth Southgate, starting against Italy on Tuesday and coming off the bench against Australia in an international friendly last Friday.
However with the European championships coming up next summer, Phillips knows game time is a must if he is to be a part of England's travelling party to Germany.
"I know that I need to be playing games and competing every weekend," Phillips said after England's 3-1 win over Italy at Wembley.
"I'm going to have to make a decision on [my future] over the next months."
"He [Gareth Southgate] just says that for me to keep my spot I have to be playing games," Phillips added.
"That's what I want to do. I have agreed with Gareth on that."
"I want to play football and want to play as much as possible.
"Over the last year and a half I haven't been able to do that due to injuries and [other factors]. It's something I am going to have to think about.
"Hopefully my chance does come but if it doesn't then I will have to make other decisions as well."
Newcastle United have been linked with a move for Phillips in recent days.
