Phillips told the Houston Chronicle on Wednesday he'd like to continue in his role as the team's defensive coordinator.
On Tuesday night, the Texans reached an agreement with Penn State coach Bill O'Brien to make him the third head coach in franchise history. Phillips said he doesn't know O'Brien and acknowledged that could be a hurdle in retaining his job.
"I don't know what they're feeling is, not knowing the guy," said Phillips, who was told assistants will have the opportunity to interview for roles on O'Brien's staff. "Usually when somebody gets a job and you don't know anything, you're probably not involved. But I don't know that for a fact."
Phillips has no issue with the Texans despite being passed over.
"I think they felt (O'Brien) was best for their football team and I can deal with that," he said. "I trust (the Texans') ownership and they made the decision they made. They felt they did what's best for their football team and I can deal with that. I told them I appreciated them letting me know."
Phillips, 66, was viewed as a major asset to the Texans during their 12-4 season in 2012. Despite the 2-14 finish this season, Houston still ranked seventh in the league in yards allowed.
If Phillips doesn't stay with Houston, he'll likely land on his feet somewhere else.