McKay has scored 16 goals for Inverness this season and has netted in his last six appearances - a run which started with the winner at Celtic last month.
The 24-year-old has been linked with the likes of Derby County and Millwall, but Butcher is determined to keep the former Northampton forward at Inverness.
"There is no way we want to lose Billy," said Butcher in the Inverness Courier. "That hasn't even entered my thoughts.
"I gave Billy a two-year deal in the summer and a few people thought I had lost my senses.
"As it happens, it has turned out to be a very good piece of business. We've worked hard to get into the position we are currently enjoying. Why would you want to disrupt that?
"If anything we're looking to extend deals and add to this group. Hopefully, we will have some positive news on contract extensions at the end of the week."
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