Erik Ten Hag's side were in need of a goalkeeper after Newcastle United ended Martin Dubravka's season long-loan agreement with Manchester United.
Butland will provide cover for David De Gea and Tom Heaton at Old Trafford.
The 29-year-old has played 87 times in the Premier League for Stoke City and Crystal Palace.
"This is an amazing club and one that I am now proud to represent. I'm really looking forward to working with an unbelievable goalkeeping group, supporting each other every day to create the best training and playing environment for the team," Butland told United's official website.
"I've played against David de Gea and represented England alongside Tom Heaton; they are top-class keepers, and I am relishing the opportunity to compete alongside and support them as team-mates.
"There is a lot that this group can achieve this season and I'm excited to play my part in helping everyone to reach these ambitions."
United football director John Murtough added: "Jack is an excellent goalkeeper with great experience throughout his career. His mentality and personality will be a real asset to our superb group of goalkeepers and the whole squad."
Butland has nine caps for the England national team
