AFL.com.au understands the trade is one of the options being considered as the Magpies try to secure the versatile youngster who was recruited by the Lions in 2010.
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Paine, 20, did not play a senior game with Collingwood in 2013 and appeared to have fallen out of favour with Magpies coach Nathan Buckley.
He kicked 45 goals in the VFL but was constantly overlooked.
Buckley maintained that Paine had to work hard on the defensive side of his game in order to crack a spot in the senior team. As the season progressed, he said he was pleased with his progress.
However, the Magpies preferred to use defender Ben Reid in the uncustomary forward role late in the season rather than give Paine an opportunity.
The recruiting of Sydney Swans' Jesse White has appeared to push the talented Paine - who played six games in 2012 - further down the pecking order.
Karnezis has long been on Collingwood's radar but they looked to have lost the inside running on a trade for a late draft pick when North Melbourne joined the race early this week.
That development left Collingwood with only pick No.67 available to trade for Karnezis, well behind the Kangaroos offer of a third round pick No.47.
However, Derek Hine expressed confidence on Wednesday night that the Magpies would still secure Karnezis, with the 21-year-old midfielder forward keen to get to the Magpies.
With 24 hours before the trade deadline, there are still several options for Karnezis.
