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After achieving promotion with MK Dons from League Two at the conclusion of the 2018–19 season, Butterfield's contract with the club was terminated along with manager Paul Tisdale and assistant manager Matt Oakley on 2 November 2019 following a poor run of results.

On 16 September 2016, Butterfield was appointed assistant manager of Southampton's Under-18 team. He left his academy coaching position with Southampton on 10 August 2018 and immediately joined League Two club Milton Keynes Dons as a first-team coach.

On 14 May 2015 Exeter manager Paul Tisdale appointed Butterfield as a player-coach. Butterfield departed the club and subsequently retired from playing football in September 2016, just over a month into the 2016–17 season.

Following the signing of Nathaniel Clyne, Butterfield made no appearances for Southampton in the Premier League in 2012–13. On 28 March 2013, he moved on loan to Bolton Wanderers, managed by his former Crystal Palace teammate Dougie Freedman and assisted by Lennie Lawrence, his old manager at Grimsby. He made his debut two days later, coming on as a second-half substitute for Marvin Sordell in the away game at former club Charlton Athletic. He made his first start for Bolton at the Reebok Stadium in the 1–0 win against Huddersfield Town.

Butterfield was released by Southampton on 4 June 2013 at the end of the 2012–13 season.

On 23 August 2013 Butterfield signed on non-contract terms with League One side Carlisle United following an unsuccessful trial with then newly promoted Championship side Bournemouth.

Butterfield made his debut on the same day in a 1–1 draw at Colchester United.

On 2 September 2013 Butterfield was released by mutual consent after having only made 2 appearances for Carlisle.

On 21 September 2013 Butterfield signed for League Two side Exeter City.

In his second season, Butterfield began to be used more sparingly after injury prevented him from training and he struggled to force his way back into the Southampton starting eleven. On 9 August 2011, Butterfield played 120 minutes in a match against Torquay United in a League Cup tie which Southampton won 4–1. His first league match of the 2011–12 season came on 29 October 2011 when he played 90 minutes against Middlesbrough and made an assist for Guly to score the first goal in the game after Butterfield made a cross to allow Guly to score a header. The match ended 3–0 for Southampton. Despite his fitness and injury preventing him from playing, on 17 February 2012, Butterfield signed a one-year contract extension with the club, keeping him at Southampton until June 2013.

On 16 July 2010, he joined Southampton on a one-year deal and joined the squad in Interlaken ready for the game against FC Sochaux. On 7 August 2010, Butterfield made his debut for Southampton in a 1–0 loss against Plymouth. Since making his debut, Butterfield established himself in the starting eleven in the right back position. His good form kept Frazer Richardson out of the starting line-up and Southampton were promoted to the Championship for the 2011–12 season after their 3–1 win over Plymouth.

In his first season, Butterfield made 38 appearance (34 League, 2 League Cup and 2 FA Cup) for Southampton supplying three assists. After the end of 2010–11 season, Butterfield signed another 12 months deal. Butterfield told Saints' official website "My contract has now flowed into next season because of the amount of games I played and I'm certainly happy to be on board at a club that is going in the right direction, I think I've played a reasonable amount of games and I think I've played reasonably well all season. For us to get promoted is a massive thing for the club and for me to be a part of it, I'm really happy with that."

Butterfield started the 2009-10 Football League Championship season as the main right back ahead of Nathaniel Clyne. However, due to Palace's financial problems, that saw them put into administration, he was converted to a makeshift striker. Butterfield scored a hat-trick in the space of 6 minutes and 48 seconds during a 2009–10 FA Cup fourth round replay 3–1 win against Wolves; he scored with his left foot, right foot and his head which is described as the 'perfect hat-trick'. This is the club's fastest ever hat-trick, beating the previous record set by Dougie Freedman in 11 minutes, somewhat ironically against Butterfield's old club Grimsby Town, in a match that Palace went on to win 5–0. Palace manager Neil Warnock revealed after the game that Clyne, who had played at right-back during the game, had turned down a move to Wolves only days earlier. Had the move gone through, Butterfield would have played at right-back instead.

The form of Emmerson Boyce and long-term injuries restricted his appearances for the next two seasons, before re-establishing himself in the right-back spot for a spell. Midway through the 2008–09 season he was loaned out to Charlton Athletic, but he managed to regain his place in the Palace line-up the following season, despite his Eagles career appearing to be over.

He arrived at Selhurst Park in 2002 where he quickly became a favourite of the crowd. He played regularly for the next two seasons, playing in the 2004 Football League First Division play-off Final that resulted in Palace's promotion to the Premier League.

As the seasons progressed, Butterfield became more and more involved in club affairs, and featured often on the right side of defence and as a makeshift centre half. He was part of the Grimsby team that defeated Liverpool in the League Cup in 2001–02. (at 0–0 Butterfield kept Grimsby on level terms by clearing an Emile Heskey header off the line).

At the end of the 2001–02 season, Butterfield decided against a new contract and moved to Crystal Palace In his five years at Grimsby Town from 1997 to 2002, Butterfield featured 124 times in the League, scoring 3 times. He played under three different managers, Alan Buckley, Lennie Lawrence and Paul Groves.

Butterfield was educated at Boston Grammar School in Boston, Lincolnshire. He was snapped up by Grimsby Town as a youngster, and was promoted to the club's first team setup midway through the 1996–1997 season. Butterfield was primarily used as a right back while at Blundell Park and made his first team debut in a 0–0 draw with York City on 9 September 1997. Butterfield went on to make eleven appearances in the 1997–1998 season, and scored his first senior goal in the club's 1–0 Football League Trophy victory over Hull City that season. Despite playing no part in either, Butterfield was among the winning squad who earned a double Wembley win that same season, triumphing in the Football League Trophy, as well as the Second Division Play-Off Final

Daniel Paul Butterfield (born 21 November 1979) is an English former professional footballer. He was most recently a first-team coach at League One club Milton Keynes Dons.