Organizers say the statue will feature Paterno sitting on a bench reading. It's expected to cost about $300,000 and would hopefully be done in 2015 by Philadelphia sculptor Zenos Frudakis.
Penn State spokeswoman Lisa Powers says the school isn't involved in the plan. But a restaurant owner in downtown State College says he's interested in having the statue in front of his establishment.
In 2012 the school removed a Paterno statue from the campus after an investigative report alleged the late coach and three other top Penn State administrators concealed sex abuse claims against retired assistant coach Jerry Sandusky.