Burnley have had two bids turned down for the 21-year-old Northern Ireland international, with Scunthorpe insisting that he is not for sale.
But his representative Gary Mellor, who is also the agent for Burnley's Ade Akinbiyi, said Paterson would like to leave Glanford Park.
"He would love to stay and play his football in the Championship," he told the Lancashire Telegraph.
"Martin has heard about the interest in the media. Burnley's a good club so we will see how things develop."
Mellor's comments come just a day after the Iron's goalkeeper Joe Murphy told an Irish newspaper that he wants to secure a move back to the second tier of English football.