Butler, 18, is a product of club’s youth academy and is already regarded an important member of the squad at Fratton Park.
The player’s potential has been spotted by Premier League clubs as well, with the defender widely tipped to leave his current side for greener pastures at the end of the season.
With Portsmouth in serious financial problems, interested clubs are aware the player should be available for a nominal fee at the end of the season.
Dan Butler has spent the first part of the season on loan at Havant and Waterloovile, making 8 league appearances for the English Conference side.
He has since returned to his parent club and played full 90 minutes in club’s last three League One fixtures.
Portsmouth chiefs know all too well they won’t be able to keep hold of their prized asset and plan to sell the full-back to the highest bidder.