
Details of the deal were not disclosed by either club but British media reported that there is no option to buy clause included for the 28-year-old, who has four years remaining on his contract with City.
“I’m really pleased to be here,” Phillips said.
“There’s always been a lot of speculation about me moving to West Ham, so I’m really excited to get going now.”
The England international joined City from Leeds United in the 2022 close-season for around £45 million but was sidelined due to a shoulder injury.
Phillips fell down the pecking order after being criticised by manager Pep Guardiola for returning overweight from the World Cup, making only four league appearances as a substitute this season.
The defensive midfielder is vying for a spot in the final England squad for the Euros in five months, and regular playing time at West Ham could help him stay on manager Gareth Southgate’s radar.