The 26-year-old former Huddersfield Town midfielder was held after police were called to a party in Bardsey in the early hours of Sunday morning.
Butterfield, who left Huddersfield in a £5million transfer to Derby County last year, got engaged to his girlfriend Hollie Dixon in March and held a party at their Leeds home last weekend.
The footballer, who has also had stints playing for Middlesbrough, Barnsley and Norwich during his career, has been bailed by West Yorkshire Police.
Detective Inspector Phil Jackson, of Leeds District CID, said: “At 2.28am on Sunday, police were called to a report of a 47-year-old man having been assaulted at an address in Bardsey.
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“The man was treated at hospital and discharged later that day.
“A 26-year-old man, from Leeds, was arrested in connection with the incident and has since been released on police bail pending further inquiries.”