He went on to make his name with Lincoln, Watford and England, but this is his first formal involvement in his hometown club other than taking charge of sides during the opening of Glanford Park and Alex Calvo-Garcia's benefit match.
Local businessman John Godfrey CBE has also re-joined the club as honorary president.
Club chairman Steve Wharton said "I am delighted that John and Graham have accepted these honorary positions.
"Graham has always taken a keen interest in Scunthorpe United since childhood, and is one of Scunthorpe's most famous sons.
"The directors are very proud that he has agreed to become one of our vice presidents.
"John is a major shareholder, a very successful local businessman and farmer, and a very worthy person to be our president.
"Despite our differences over the running of the club some years ago, John has always put the well being of the club first and will be a good ambassador."