Williams has only made six appearances for the Reds this season, with just one of those coming in the Premier League, with the 20-year-old down the pecking order for the right-back spot at Anfield.
Phillips, meanwhile, has made just four outings in all competitions this term and has not played a single minute of league football during the 2021-22 campaign.
According to Sky Sports News, Liverpool are open to allowing the defensive pair to move on before the winter transfer window closes for business.
The report claims that Williams could leave on a permanent basis if the right offer is made, while Phillips is attracting interest from Italy, as well as the Premier League.
The Reds are believed to value Phillips in the region of £15m, with the defender impressing in his 20 appearances for Jurgen Klopp's side during the 2021-22 campaign.