He joined the Us from Brighton and Hove Albion in 2001.
Oxford have offered him reduced terms to stay at the Kassam Stadium, and the Iron are looking to add more experience to all areas of the side.
The Oxford Mail claims that he has signed a two year deal to move to North Lincolnshire.
Iron manager Brian Laws refused to comment, but told the Scunthorpe Telegraph that he hopes to sign a player this week.