The England international has struggled for game time since leaving Leeds for the Etihad Stadium last summer for £42m, making only two Premier League starts last season.
Guardiola has already confirmed the midfielder rejected the chance to go on loan during the summer transfer window and Phillips has since seen competition for places increase.
Mateo Kovacic and Mathues Nunes both arrived over the summer but a suspension to key midfielder Rodri has opened the door for Phillips, who remains a key part of the England set-up despite his lack of involvement at club level.
City boss Guardiola has confirmed Phillips will start at the Etihad on Wednesday as the club get their Carabao Cup campaign underway with the visit of last year’s finalists, Newcastle.
“Yeah of course but not just this week,” said Guardiola when asked if Rodri’s absence offered Phillips the chance to step-up.
“For many times since he has arrived he has been really important. He knows everything in the game like what happened against Nottingham [Forest] in the second half. You have to defend and make options that helps us boost the team [and] was important.
“We try to help him and make this step and of course the next games are important and we will see in every game what is best for the team."