The £30million-rated keeper will likely be targeted by the Blues if they lose Courtois to Real Madrid.
Dorsett is convinced Courtois will go and thinks Stoke’s Butland and Leicester’s Kasper Schmeichel will be in Chelsea’s sights.
Speaking on the Sky Sports Transfer Talk podcast Dorsett said: “We’ve learnt this week that he’s on Chelsea’s list of potential replacement if Courtois leaves.
“And we fully expect Courtois to leave don’t we as he goes into the last year of his contract.
“We think he’ll go to Madrid and so because of that you’ve got Butland and Kasper Schmeichel who is on Chelsea’s list as well we’re told.
“So there’s a couple of possibilities here. Either Butland goes to Chelsea straight away, job solved or Schmeichel goes to Chelsea and I think Leicester would be very interested in Jack Butland.
“So there’s a bit of a merry-go-round, a bit of a domino effect going on there again.”
Butland, 25, wants to stay in the Premier League but Stoke say there has been no approach.
Either way, boss Gary Rowett wants to keep Butland to inspire an immediate return.
Rowett said: “If the unthinkable happens and Jack ends up leaving, which I don’t want to happen, we would replace him with a top-quality goalkeeper ourselves.
“Unless a top club comes in with a top bid, I don’t think Jack would see anything else as a good alternative.
“If we get to the last few days of the window, it wouldn’t be something we would entertain.”