Butler averaged a career-high 11.9 points with the Clippers last season, after being acquired from the New Orleans Hornets last August.
"Thank you Twamily for your support always!" Butler wrote on his Twitter feed Wednesday afternoon. "I'm so happy to be back with the Clippers so much unfinished business!"
Butler set the Clippers' franchise record for most 3-pointers made in a season with 145 last year. He also set the franchise record for 3-pointers attempted in a season (432).