Earlier this year, Phillips said the WRU was watching 94 Welsh-qualified players playing in England.
"The proximity of the Dragons helps with our efforts in repatriating exiled players," Phillips told The Times.
"Players are more likely to come back if they know that (British and Irish Lions coach) Warren Gatland or (Wales coach) Rob Howley is taking an interest."
(Reporting by Aditi Prakash in Bengaluru; Editing by Catherine Evans)
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