Butters will lead the Power in the absence of captain Connor Rozee, who won't play for at least three months because of a hamstring tendon tear.
Victorian-born Butters, who falls off-contract at season's end, is being backed by coach Joss Carr to continue to perform while weighing long-term offers from rivals.
"I have always got hope," Carr told reporters on Wednesday.
"The most important thing is, we play good footy."
Carr said it was a no-brainer for Butters, the Power's club champion for the past three seasons and a vice-captain, to fill in for Rozee.
"It's not about replacing Connor, but it's about maintaining the standards that Connor has set," Carr said.
"It gives Zak an opportunity to go out there and lead the way that he does."
Butters' much-discussed contract status - the Power have said they'll match free-agency offers for their star midfielder - wasn't a factor in the captaincy call.
"Not at all," Carr said.
"It was a really simple decision because Zak has been a great leader of this football club.
"And his improvement in his leadership just this year has been amazing.
"We have been rapt with his willingness to receive feedback, to get better and work on his leadership, and it now presents an opportunity for him to keep developing that."
Carr said it was imperative all players lifted to help cover for the loss of Rozee when the Power, with a 1-1 record after thrashing Essendon, host West Coast on Sunday at Adelaide Oval.
"Super disappointing - you want all your players available, you want your leaders available, you want your best players out there," he said.Â
"And not having Connor hurts.
"But it presents an opportunity for every player that plays this weekend to just lift that little bit more."
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