Knights, who had an ill-fated stint as Essendon coach from 2008-10, has been linked to the position at Melbourne, which was vacated when Mark Neeld was sacked on Monday.
The 42-year-old former Richmond midfielder has won many admirers at Simonds Stadium since taking the reins of the Geelong VFL team last season.
He made an immediate impression at the club, coaching the Cats to last year's VFL premiership, and he is enjoying a similar run of results this year.
Geelong is third on the VFL ladder with a 7-2 record.
"I haven't thought too much about Matty's desire (to be an AFL senior coach again) for a start, or his capability to take on a senior job," Scott said.
"But, off the top of my head, I think he would be an outstanding candidate."
Knights has played a key role in developing the Cats' impressive crop of young players, 13 of whom have made their AFL debuts since the start of the 2012 season.
"The most impressive thing about Matty coming into our system is the way he has embraced Geelong," Scott said.
"He's embraced our way.
"He's got some pretty strong thoughts on the game, but he's been able to submit himself to the Geelong way of doing things.
"On some levels he makes some sacrifices to do the right thing by our AFL team at VFL level.
"I think he would probably do things a little bit differently if he was head coach.
"But while I think he would be an outstanding candidate, I'm not keen to push him too hard because he is doing an outstanding job for us."
Adam McNicol covers Geelong news for AFL.com.au. Follow him on Twitter at @AFL_AdamMcNicol
