Paterson hoping Burnley keep hold of Arsenal, Sunderland target Austin
Championship rivals Brighton are also said to be ready with a £4million offer - about half what Burnley will consider.
And Turf Moor team-mate Paterson, 25, said: "The January transfer window isn't for me. I'd ban it and just have a summer window.
"It stops people touting and looking at players that aren't their own. It should be banned.
"I'd have it in summer and if you can't get your squad together, then it's just tough luck. People have clicked on to January, it's a very difficult time to get good buys.
"Over the years, people have bought in January and it's been a panic buy that's not been right for either party. If I was a manager I wouldn't go shopping in January."