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Early last week 30-year-old Butler had a medical at United's Hallam FM Academy after already beginning discussions on the deal.
Doncaster born Butler began his career as an apprentice at Scunthorpe United before penning professional terms in 2002. Andy spent six more years at Glanford Park, including a short loan spell with Grimsby Town, and made over 150 appearances for The Irons.
Following Blackpool's promotion, Butler returned to Huddersfield and was deemed surplus to requirements, he received his release and began the search for a new club.
Andy failed to secure a new club for the beginning of the 2010 season. He joined then League One side Rochdale on trial in November, and despite making a few appearances for the club's reserves he was unsuccessful in securing a deal.
Then Walsall manager Chris Hutchings signed Butler to a one-year contract in November 2010.
Following an impressive opening season, which saw him voted Player of the Season and Players Player of the Season, he was rewarded with a new two-year contract in the summer.
He went on to sign another deal, this time one-year with an option for another, in the summer of 2013.