However, he found himself often left out of Sunderland's first team during the following season. To gain playing time, First Division Wolves took him on loan in late 2000, a move made permanent by incoming manager Dave Jones for £1million in January 2001. He was made club captain for the following season which saw the team mount an automatic promotion challenge, only to fall away in the final weeks into the play-offs, where they lost to Norwich. The next year saw Butler win a second promotion to the top flight though, as the club won the play-offs, beating Sheffield United 3–0 in the 2003 final.