Knill confirmed Hibs had approached the Iron about O'Connor, a 24-year-old Northern Ireland international.
"We've had an offer," Knill said on the BBC website. "I spoke to the Hibs boss Pat Fenlon late last week about a general inquiry.
"In the meantime, they've made an offer and the board is considering it. At the moment he's our player until the end of the season."
Scunthorpe last week