"I'm sure there are a number of teams looking at him," Phelan said.
"Are we one of them? We are looking at talent all of the time and we are in there with the rest of them.
"He showed his threat in the game at Old Trafford and he appeals because he is a tall, skilful boy and in some ways he is an ideal player for the English league.
"He has stature, his feet are good and he is producing some good performances. I am sure everybody has looked at him."
Dzeko, who scored against United in the Champions League, has been strongly linked with a move to AC Milan next summer as he repeatedly expressed his desire to play for the Serie A giants.
The 23-year-old Bosnian is considered one of the hottest talents in Europe at the moment, having scored 13 goals in 21 games for the German champions so far this term.