German second division side Stuttgart are continuing talks with Liverpool to agree a new loan for defender Nathaniel Phillips, who has been on loan at the club this season.
Phillips made the move to Stuttgart in the summer transfer window, but was called back to his parent club in December, only to be loaned back again in the winter window.
Stuttgart are currently second in the 2.Bundesliga table and in contention for automatic promotion back to the Bundesliga, which might prove vital for the German side's hopes of landing Phillips.
Die Roten are locked in talks with Liverpool over a new loan for Phillips, according to German daily the Stuttgarter Nachrichten, and the Reds are claimed to favour a new loan to Germany for the defender.
Liverpool could be prepared to sign off on a new loan and Phillips is claimed to be open to the prospect of continuing at Stuttgart on loan.
The Reds called Phillips back in December to play in the Merseyside derby before loaning him out again in January.
Phillips has made an impact at Stuttgart, making 16 2.Bundesliga appearances, helping the club climb to second place in the table.
German football is bidding to restart the season in May and booking promotion to the top flight would strengthen Stuttgart's hand in the loan talks.
