Butler began his club career at Rochdale, before moving to Sunderland in 1998. He won the First Division title in his first season at the club, and was a regular during Sunderland's Premier League season in 1999/2000.

After moving to Wolves in 2001, he won the Play Off Final in 2003, and went on to make 140 appearances for the club. Butler enjoyed a spell at Leeds United before retiring, and made one appearance for the Republic of Ireland in 2000.