The price remains the stumbling block as Manchester United are considering another Newcastle United offer believed to be in the region of £2.5 million.
The Reds are desperate to recoup some of the money that they spent on strikers Louis Saha and Alan Smith and would like a deal closer to £5 million.
If the Geordies were to land Butt it would be a disappointment to local lad Michael Carrick. The West Ham midfielder has never held back his desire to return to the club he supported as a boy.
The Nicky Butt-Newcastle saga has dragged on so long. I still hope we get him though - we don't really have a holding midfielder anymore after the departure of Speed. Voice your opinions on the messageboard.