The 6ft 3in Tudor Jones, who joined Norwich from Swansea for £250,000 in June 2009, was on loan at Yeovil last year.
Butcher said: "I spoke to Yeovil manager Terry Skiverton. Owain's more of a holding midfielder - a big, strong boy - and he just wants to play.
"We've been working on this for quite some time and he is now coming to us on a free transfer.
"Right from the word go he wanted to come.
"He sounded us out and spoke to a lot of people and liked what he heard. He has a young family and they're coming up too."