Phillips's contract is two years worth $5 million and he has a no trade clause.
Phillips, a Calgary native, has one goal and 12 assists for 13 points this season. He also is a -6, with eight power play points, 24 penalty minutes, 68 shots on goal and 107 hits.
A veteran blueliner on the Senators, Phillips has played 16 National Hockey League seasons dating back to 1997-98.
Phillips' best National Hockey League season came in 2006-07 when he set a career high with eight goals (later matched in 2009-10) and set career highs in assists with 18 and points with 26. That year the Senators also qualified for the Stanley Cup Finals before losing to the Anaheim Ducks in five games.
Phillips, who is known at this stage of his career for his defensive consistency and leadership, will now try and focus on leading the Senators to the postseason. They are currently four points back of the Columbus Blue Jackets for a playoff spot in the Eastern Conference.