The Championship club have made their entire squad available for transfer as they seek to address their crippling financial situation and it was reported Chelsea had a £3.5 million bid accepted.
However, Butland, who was England's third-choice keeper at Euro 2012, has declined to speak to Chelsea as he desires regular first-team football.
"Jack's enjoying playing for Birmingham and he is gaining valuable experience," his agent Gary Mellor told BBC Sport.
"He will listen to what any club that meets Birmingham's asking price has to say, but playing is of paramount importance for Jack."
After travelling to Euro 2012 and then representing Great Britain at the Olympics, Butland won his first senior cap against Italy in a friendly in August.
Chelsea already have Petr Cech and the hugely talented Thibaut Courtois - currently on loan at Atletico Madrid - on their books, along with Ross Turnbull and Hilario.