Butts has played 47 games since his debut in 2020, including four so far this year, averaging 8.5 disposals and three spoils per game.
The 23-year-old was drafted to the club with pick No. 39 in the 2018 Rookie Draft after being originally overlooked in the 2017 Draft, putting together a strong campaign in the SANFL to earn his senior debut.
Adelaide's general manager of list management, Justin Reid, said the club was "thrilled" to see Butts recommit to the club for a further three seasons.
“Jordon's development from being selected in the 2018 rookie draft to now holding down a key defensive position in our team has been very pleasing,” Reid said.
“He's become a very reliable, no-fuss defender who we know will get the job done each week and we are thrilled that he's recommitted to the Club for at least the next three seasons.”
Butts, who is close to reaching the 50-game milestone, said he was keen to continue being a part of a developing Adelaide team.
“The Club gave me an opportunity in the draft and hopefully I'm able to repay that faith in me,” Butts said.
“I have really enjoyed my time here, a lot of my teammates are also my close friends and each year it feels like we are building towards something special so it's great to be part of that.”
The Crows now have a lengthy break after their 56-point Thursday night win, set to face the Hawthorn next on Sunday, April 23 at UTAS Stadium.