Phillips is currently a free agent after spending the end of last term on loan at Crystal Palace from Blackpool.
He scored the winning goal for the Eagles in their Championship play-off final victory over Watford and talks have taken place over a new contract to keep him at Selhurst Park for the 2013/14 campaign.
The veteran striker, who turns 40 next month, is hopeful an agreement will be reached and he is confident he still has something to offer at the highest level.
He told Sky Sports News: "At the end of this week I will start ticking over and getting ready for pre-season, and hopefully that will be with Crystal Palace.
"We're in conversations with them. The chairman and the manager have been away on holiday and it is only really in the last few days that we have made contact, but I spoke to the gaffer a couple of days after the play-off final and he made it clear that he wanted me to stay.
"Hopefully we can get it sorted in the next week so that I can report back with the rest of the lads. It is an exciting season ahead and to be a part of that would be fantastic."
Phillips admits that one final year in the Premier League would be a perfect swansong to his career, and he is targeting a record currently held by Teddy Sheringham.
Asked what continues to motivate him, Phillips added: "The buzz of the game. It is all I have ever known and all I've wanted to do. When the enthusiasm goes it will be time to call it a day.
"Physically I still feel fine. I can still do a job and the manager believes that as well.
"If I can play in the Premier league next season, that would certainly be the time to call it a day. To finish at the top would be fantastic.
"There are a couple of records that I'd like to break still. I'd like to be the oldest Premier League scorer - I know Teddy Sheringham is at the moment but I've made it clear to him that I'd like to break his record."