Butland was Vicente Guita’s deputy between the sticks at Selhurst Park last season, but Crystal Palace were in the market for a new shot-stopper.
The Eagles offered England international Sam Johnstone a contract as he was available on a free transfer after leaving West Bromwich Albion.
Johnstone agreed to a four-year deal with the Londoners and is now set to add to Patrick Vieira’s goalkeeper options, which has put Butland’s future at the club under the scanner.
The 29-year-old has attracted interest from his former side Birmingham, who are currently playing in the Championship.
However, the Blues have suffered a blow in the hopes of signing Butland, as he is not keen on continuing his career in the English second tier, which is a step down.
Butland played in nine Premier League games last term, but Johnstone’s arrival means that he will drop further down the pecking order under Vieira, and is likely to get even less game time next season.
The Birmingham target last played in the Championship during the 2019/20 season when he was on the books at Stoke City, but is not keen on dropping down from the Premier League at this stage of his career.
