The 44-year-old will enjoy his third spell at Glanford Park as he comes in to replace Walsall-bound Neil Cutler.
Manager Brian Laws told the club's official website: "I can confirm we've offered Paul Musselwhite the opportunity to come in.
"We have spoken to a couple of other goalkeeping coaches, but I think Paul's knowledge of this football club and the fact he will give his all is a major factor.
"We know he will leave no stone unturned and I think he will be a tremendous acquisition for us."
Musselwhite first joined the Iron in 1988 and made over 160 appearances in a frustrating four-year spell dominated by play-off failure before returning in 2004 and helping the club seal promotion from League Two.
He has enjoyed previous coaching roles will the likes of Lincoln, York and Bury.
- Sports & Recreation
- Paul Musselwhite