Sources told ESPN.com that the Kings plan to move Butler shortly after Christmas. Butler, 35, has found minutes hard to come by in the Kings' frontcourt.
The Milwaukee Bucks, Butler's hometown team, have quickly emerged as the likely destination for Butler, according to sources close to him. He is a native of Racine, Wisconsin.
Off to a disappointing 10-16 start, Milwaukee could be helped by an infusion of veteran leadership after losing Zaza Pachulia and Jared Dudley over the summer to clear a financial path for the free-agent signing of center Greg Monroe.
Butler, who signed with the Kings over the summer, has already had one stint with the Bucks. But halfway through the 2013-14 season, with the Bucks en route to a 15-67 finish, Butler secured a buyout that ultimately enabled him to join a title contender in the Oklahoma City Thunder.
If the trade comes to fruition as expected, Butler would be reunited with Bucks coach Jason Kidd, who played with Butler on the Dallas Mavericks during their 2010-11 championship season.