Collins has been a stand out performer since returning from injury and Iron boss Brian Laws beleives an agreement is close.
“I don’t think we’re that far away – which is sweet music to me,” Laws told the Scunthorpe Telegraph.
“If we can secure Michael it would be a real bonus for us.
“He was a good player for us last season and he’d be a huge one for us next year.
“We’re seeing the best of him and I want to see more of him.
Laws admitted Collins new found attitude could land him the captaincy at Glanford Park, despite Andy Dawson's return to Glanford Park.
“There’s the potential, absolutely. I’ve certainly talked to him about it.
“I’ve seen a professionalism about him that I admire and he’s someone I want a lot of the younger players to look upto".