The two-time All-Star sat out Saturday night's game against New Jersey because of a bruised left kneecap.
Butler was hurt when he dived to the floor for a rebound in the second quarter of Friday's loss to Atlanta.
Butler had an X-ray and an MRI, with no structural damage found. Saunders says the injury is "nothing to be overly concerned with" and that there's a "pretty good chance" Butler will play in Washington's next game.
Butler missed 58 games over the last three seasons due to a variety of injuries. The Wizards are already without forward Antawn Jamison, who is expected to miss at least two more weeks with a shoulder injury.