Phillips represented nine clubs during his 20-year playing career, including Watford, Sunderland, Southampton, West Brom, Aston Villa and Birmingham.
He scored a total of 287 goals, won eight caps for England and in 2000 became the first English player to win Europe’s Golden Shoe award. Bayern Munich’s Harry Kane became the second English winner last season.
Since retiring in 2014, he has held coaching roles with Leicester City, Derby County and Stoke City before a 15-month stint at South Shields, who he led to promotion into the National League North in his second season in charge in 2022-23.
Phillips had expected to remain at Hartlepool this season but claimed the club had withdrawn a contract offer in order to appoint former Woking boss Darren Sarll instead.
Phillips will be assisted by Wess Brown, who he worked with at South Shields.