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His current deal runs out in the summer, but he has told the club that he wants to continue plying his trade in North Lincolnshire.
Iron boss Brian Laws told the Scunthorpe Telegraph: "Paul loves it here. He enjoys working with the players around him.
"He has stressed already that he doesn't want to walk away at the end of the season.
"Paul's present contract expires at the end of this season and we have already set the ball rolling about a new one.
"We are hoping that somewhere along the line we can strike a deal with him.
"We will certainly do our utmost to try and keep him at Glanford Park."