Leyton Orient and Southend united have also both registered an interest in the player, but the player has admitted in private that Oxford United is his preffered choice of club, sources close to him have suggested.
He has been in the PFA Third division team of the year for the past two seasons, and was a firm fans favourite at Glanford Park in his three year spell with the Iron.
"The decision to leave Scunthorpe was mutual," explains Lee about his departure from North Lincolnshire.
"I only signed a one-year contract last summer and they let me go because they couldn't afford my wages.
"I feel that I've got a lot to offer and I have definitely improved a lot since I was at Southend. I have gained a lot more experience and got a lot stronger.
"Now I'm just waiting to see what offers come along. I've had brief chats with both Leyton Orient and Oxford United, but I haven't made any decisions yet.
"My family still live in East Ham, so a move back south would suit me, although I'm not really bothered where I have to live to play for my next club."