Left-hander Brian Duensing is the club's lone player still eligible for arbitration. Right-hander Jared Burton avoided arbitration by signing a two-year extension in December.
Butera, 29, hit .198/.270/.279 with a homer and six doubles in 42 games with the Twins last season. He also hit .279 with a homer and three doubles in 15 games at Triple-A Rochester.
Butera, known for his defensive prowess, is a career .183 hitter with five homers and 41 RBIs in 184 games over the last three seasons with the Twins.
On Wednesday, Butera tweeted that he'll be named to Team Italy's provisional roster for the World Baseball Classic on Thursday.