Bradford-born Butterfield, 21, has captained the Tykes in the last two games and scored his second goal in three games against Birmingham City at the weekend.
Speaking ahead of tonight’s trip to Derby County, Hill said: “There are no knee-jerk reactions to good performances but do I want Jacob Butterfield to stay at this club? Yes. If we can enter negotiations to extend his stay, brilliant.”
Butterfield’s existing deal expires at the end of the season and the club wanted to assess his progress under Hill before sitting around the table.
Hill has now seen enough to insist that Butterfield can have a big future in the game.
“He’s quality, he’s got the world at his feet,” Hill said. “If he keeps producing, he’ll not just be popular in our dressing room but across the footballing world.”
The Tykes dropped to 17th in the Championship table after Birmingham scored a late equaliser to rescue a point at the weekend.
Although it was a fourth consecutive draw, Hill is still delighted with progress so far. “I’m really happy with how we are developing as a team and a football club but we need an end product, we need more goals,” he said.
Midfielder Miles Addison, on loan to Barnsley from Derby, is ineligible for tonight’s game.
Former Barnsley midfielder Brian Howard, meanwhile, joined Millwall yesterday on a three month loan deal from Reading.
Last time: Derby 0 Barnsley 0; March 5, 2011, Championship.
Last six games: Derby WWLLWW, Barnsley LWDDDD
Referee: NS Miller (County Durham).