Talks between the player and club have been 'ongoing' now for a number of months, with both parties keen to establish which league Albion would be playing in next season before any final decision was made.

Phillips himself believes that concerns over his knee problems are unfounded, despite missing proportions of this season through injury.  The 34 year old striker has been pressing for a 2 year deal, regardless of Albion's league status next year.

But with the Baggies all but having sealed promotion for themselves it looks as if final attempts to resolve the contract differences have broken down between the two parties.

The Club are believed to have offered Phillips just an additional 12 months, and fresh rumours have broken this morning that the pay structure suggested by the club for the contract do not meet Phillips' requirements.

The news will come as a downer for many Baggies fans who were keen to see the striker stay.  It is believed a summer exit for the ex-Sunderland man would see him move in the direction of either Wigan Athletic or Derby County.

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