The player and his representatives have arrived at Millmoor and are reportedly close to agreeing a deal that will see Butler playing his football with the Millers for the next three years.
Rotherham had said that the move could potentially have been approaching collapse due to Butler's excessive wage demands. However, it now seems that the deal could be back on.
The Dudley born forward is keen on a move to Rotherham as the South Yorkshire side are offering regular first team football, something which is unavailable at Reading despite massive reserve team goal hauls.
A Rotherham spokesman confirmed that the protracted £150,000 transfer could be completed shortly.
"Butler has indicated that he is keen to move to Millmoor to sign a contract which is likely to be for three years in view of the fact that he cannot carve himself a regular place in the Reading team," explained the spokesman.
As Reading have agreed a £150,000 transfer fee for Butler, a player who cost £850,000, all that remains is for the player and is agent to settle contract negotiations with the Millers.
Despite Butler's previous reluctance to leave the Madejski Stadium, the Millers are confident that the deal will go through. The Reading number sixteen has previously snubbed moves to Bristol City, Preston, Stoke and the Busan Icons.
The spokesman added: "There has been a change of events about the impending transfer of striker Martin Butler from Reading to Rotherham United,"
"It was reported early on Thursday morning that the move might be scuppered by the agent's demands. However the agent and player have travelled to Millmoor late yesterday afternoon to conduct talks."
Meanwhile, unofficial rumours linking Reading with a move for Kevin Lisbie continue to grow with sources suggesting Alan Pardew wants to bring in the Charlton man on loan. There has however been no official comment on this speculation.