The club will not be allowed to use the terrace in its current state for Championship football beyond this season.
A Keep Scunthorpe Standing campaign has been launched by supporters, with the backing of the club and the Football Supporters' Federation. 700 signatures were added to a petition during Tuesday's game against Barnsley, bringing the total collected since Saturday to 2,100.
The club have drawn up two plans, the first option would simply be to install seats on the current terrace. This would reduce capacity to 8,003.
The second is to extend the stand, with a three-level building standing the length of the stand where the Iron Bar currently stands.
This would include a new club shop and ticket office, and would cost more than £1m.
The stand, which would have to be all-seated unless the Keep Scunthorpe Campaign is a success, would be cantilevered - meaning no supporting pillars are needed.