And, if the Englishman does agree to take over the Easter Road hotseat, his number two Malpas refused to rule out putting himself forward for the Caley Thistle job.
Butcher - who is tipped to be confirmed as Pat Fenlon's successor on Monday - watched from the stands as Inverness claimed a 2-0 win at Hibs to move up to second in the Scottish Premiership.
Butcher's long-time assistant said: "People are assuming I'm involved in this. I'm not involved in this at all.
"Terry has spoken to Hibs, Hibs are speaking to our club. Maurice Malpas has never been mentioned.
"My job was to take the team today. I'm sure if it had been any other game Terry would have taken the team but nobody felt comfortable.
"I would expect, when Terry makes his mind up, that I will get involved some way, whether that's 'You're not coming' or 'Do you want to come?' or whatever.
"There are the three parties. You've got the two clubs and Terry.
"Everybody tells me it's done and dusted but Terry tells me otherwise.
"The two clubs are obviously talking about compensation. Until that bit gets decided, I don't have a decision to make.
"I think everybody knows, if they get everything done, he probably would come here."
Asked if it was conceivable that he and Butcher could go their separate ways, the former Motherwell boss said: "It's a possibility."
When quizzed on whether he fancied the Inverness job himself, he added: "Possibly. It could be a difficult decision.
"I enjoy coaching and I'm happiest when I'm on the training ground.
"That was the one thing I missed when I was managing, I wasn't on the training ground enough.
"If I ever did become a manager again, that's what I would probably change."
Hibs assistant boss Jimmy Nicholl has taken charge of team affairs since Fenlon's departure.
Asked if Butcher is the right man to take over at the Leith club, he said: "He's going to have to prove that.
"You get excited about a job and a big club but he's going to have to prove he's got what it takes to turn things around here and get them going."
A penalty from Nick Ross and a further strike by Billy McKay secured the win for Inverness and Nicholl added: "We didn't know Terry was sitting in the stands.
"But I said to the players (on Friday) that they would be on a 90-minute audition. It would be like being on the X Factor.
"I told them to go and prove for 90 minutes that they are good enough to be in his plans for the future. But confidence is low."
Nicholl fully expects the defeat to Inverness to be his last game at the club.
He said: "You know what it's like in football.
"People come in and they bring their own people in and rightly so. I would do the same thing myself.
"We will wait and see what happens. Until you get a phone call you have to prepare to come in on Monday morning, although I did clear my desk (on Friday)."
- Sports & Recreation
- Maurice Malpas
- Pat Fenlon