The 24-year-old was expected to depart Liverpool on a permanent deal this month, but has instead left for a five-month loan at Dean Court.
Phillips was valued at £15 million after signing a new four-year contract in August, but despite interest from Newcastle, Watford, Burnley, West Ham, Brighton and clubs in Germany and Italy, no realistic offers emerged.
That left Liverpool awaiting interest on deadline day, and ultimately that has led Phillips to join Bournemouth for the rest of the season.
The Championship club have paid a £1.5 million loan fee to bring the centre-back to the south coast, while they will also cover his wages and pay a further £250,000 if they are promoted.
According to the Bournemouth Echo, the clubs also negotiated a purchase option in the deal.
It is the second loan move of Phillips’ career, having spent the 2019/20 campaign with Stuttgart in the German second division.
His reputation has been given a major boost since then, and Liverpool will now be hoping that he continues to perform in the Championship before attracting further interest in the summer transfer window.
Bournemouth are currently third in the Championship, six points behind leaders Fulham, one behind second-placed Blackburn with a game in hand and seven clear of seventh.
Good luck, Nat!