The teenager, known for her partnership with pet dancing dog Pudsey, was first linked to the BBC ballroom contest back in June.
Speaking to Digital Spy, Butler confirmed that she would not be appearing on Strictly this year, but would still "love" to be a contestant in the future.
"I did see [the rumours] and, you know, I haven't got time to go on the show," she explained. "But yeah I'd love to do it. Maybe next year, you never know. That would be amazing.
"I'm pretty sure that [Pudsey] could come to rehearsals, tell me off for not pointing my feet right or whatever."
Ashleigh & Pudsey will, however, be returning to reality TV later this year as judges on ITV2's Top Dog Model.
Asked how she took the transition from talent show contestant to panellist, Butler replied: "I really enjoyed that.
"Being on the other side was a little bit weird, but I also felt like I could connect to the people because I've been in their shoes. I know exactly how they felt.
"There was a few dogs that had a few tricks up their sleeve and it was really great fun working with them and working with the people on the show."
Ashleigh & Pudsey are also set to appear in Woking's Dick Whittington pantomime, which will run at the New Victoria Theatre from December 7, 2012 to January 6, 2013.
Photo gallery - Strictly Come Dancing 2012 rumoured contestants:
Copyright: PA Images Dominic Lipinski/PA Wire