If the Senators are unable to lock Phillips into a new deal, they are likely to pursue a trade.
Phillips, 35, is scheduled to become an unrestricted free agent July 1, unless he comes to terms on a new deal.
The Boston Bruins are the team most publicized to have interest in Phillips, though the Anaheim Ducks and Los Angeles Kings are also reportedly interested.
Meanwhile, the Senators are still trying to acquire right wing Chris Stewart from the Buffalo Sabres.
According to a source close to the situation, TFP has learned that the Sabres are interested in prospects Shane Prince and Mike Hoffman from the Senators.
Trade negotiations are expected to resume Sunday.