Contacted at health committee meetings in Invercargill yesterday, the Timaru accountant said he was ''quite comfortable'' with Health Minister Dr Jonathan Coleman's decision to appoint a different person.
''The minister and I have an understanding that I will retire.
''The timing obviously depends on him finding a replacement. But it is imminent.''
It was Dr Coleman's decision to seek a new chairman, but Mr Butterfield felt four years was enough. He originally intended to do one three-year term.
Mr Butterfield declined to talk about issues facing the board, or his experience as chairman, saying it was not the right time.
In a statement, Dr Coleman told the Otago Daily Times Mr Butterfield had given ''great service'' as chairman of the SDHB, and, before that, the South Canterbury District Health Board.
''Joe had stated that his intention was always to be in the role for one term, and he's now into his second term.
''We both agreed that the challenges which Southern DHB faces requires a leader who is prepared to serve for the next few years.
''It's therefore appropriate that Joe hands on the chairmanship once a suitable new chair is appointed,'' Dr Coleman said.
Dr Coleman did not respond to a question about speculation he was considering a new position at the health board of an executive-style chairman or chairwoman, who would take a more active role in the board's affairs.
The board has to get a grip on its finances as part of work to develop a business case for a new clinical services building at Dunedin Hospital.
Mr Butterfield was appointed in late 2010 by then health minister Tony Ryall, who reappointed him for second term in late 2013.
Known for his no-nonsense style, Mr Butterfield has a long history in health governance, under both National and Labour governments.
He stepped down as chairman of the South Canterbury DHB at the end of 2009 after the nine consecutive years allowed for such positions.
