Phillips scored eight goals in the opening weeks of the 1998–99 season as Sunderland reached the top of the Division One table. A broken toe sustained in a League Cup tie against Chester City in mid-September kept him out for nearly four months, but his goalscoring resumed immediately upon his return, with a "screaming volley" away to Queens Park Rangers. Promotion was confirmed in April as Phillips scored four of Sunderland's five goals in an away game against Bury, and he ended the season with 23 goals from only 26 league games, and 25 goals in all competitions. His form earned him an international call-up for England, and he made his debut in the starting eleven in a friendly against Hungary.