Butterfield, 54, is a native of Bangor, Maine, and reportedly was in the running for the Jays’ current managerial vacancy after interviewing for the job prior to Farrell’s arrival two years ago.
Butterfield, who was the third base coach in Toronto the past three seasons, has spent 34 years in professional baseball as a player, coach and manager.
He'll be reunited with close friend Farrell, with whom he shares a like for an aggressive approach running the bases.
Last week, Farrell lured first base coach Torey Lovullo from Toronto to serve as Red Sox bench coach. Lovullo joined the Blue Jays with Farrell from Boston after spending time as manager of the Red Sox’s AAA affiliate in Pawtucket, RI.
Butterfield was highly regarded for his teaching skills with infielders, communication and work as a third base coach during his time in Toronto.
Nick Cafardo of the Boston Globe wrote recently that Butterfield "may be the hardest-working coach in the game."
Butterfield was the Blue Jays' first base coach in 2008 and 2009 before moving to the third base coach's box in 2010.
His coaching career began in 1984 as a roving infield instructor in the New York Yankees' organization after a five-year stint playing in their minor league system.
In 1988, Butterfield was named the top manager in the single-A Gulf Coast League in his rookie season.
Six years later, Yankees manager Buck Showalter hired Butterfield as his first base coach and there was some thought he would add Butterfield to his staff in Baltimore for next season.
When Showalter left the Yankees for the Arizona Diamondbacks, Butterfield followed as third base coach.
He would return to New York in 2001 and managed Tampa Bay to a Florida State League championship. Butterfield managed the Yankees' AAA affiliate in Columbus the following season before arriving in Toronto as third base coach and infield instructor.