The Birmingham keeper, 19, was a late call-up for Euro 2012 when John Ruddy broke his finger.
But Butland was anxious that would not affect his chances of playing at London 2012, especially as he did not get a Euro game.
The FA have come to an agreement with Birmingham that Butland can take part, despite no other Euros player being selected.
The 18-man squad includes no Scottish or Northern Irish players.
POSSIBLE SQUAD: Butland (Birmingham), Steele (M'boro), Caulker, Rose (Tottenham), Tomkins (West Ham), Dawson (WBA), Richards (Man City), Ramsey, Gibbs (Arsenal), Lowe (Blackburn), Giggs, Cleverley (Man Utd), Bertrand, Sturridge (Chelsea), Allen (Swansea), Zaha (C Palace), Bellamy (Liverpool), Sordell (Bolton).