He played four games across three years with the Bulldogs after being drafted with Pick 53 in the 2019 National Draft, making his debut in 2020.
Butler played at VFL level for the majority of last season, averaging 21 disposals and five marks across 14 matches.
He played predominately across the half-back flanks last year and was trialled on the wing at times, but failed to break into a strong Bulldogs side on all but one occasion.
This Roos' announcement follows the unveiling of former Adelaide forward Ben Davis as their inaugural signing for the season.
✍️ Louis Butler lands at Arden Street!
A former Bulldog, Butler is a hard-working player that has the ability to standout in a multitude of positions on gameday.
We're looking forward to having you at North Melbourne, Louis! 🌟 pic.twitter.com/cpR9EqB5WX
— North Melbourne VFL (@NorthVFL) January 25, 2023
The list of former AFL players signed at North Melbourne VFL also includes former St Kilda defender Jarrod Lienert who will operate in a player-coaching capacity on a part-time basis.
Senior coaching duties will be taken on by former Adelaide player Tom Lynch, who has previously worked alongside Ben Davis in the Crows' forward pack.
The Kangaroos will be looking to improve on their disappointing 2022 season in the VFL this year after they recorded just four wins from their 18 matches.
The 2023 VFL fixture is yet to be released, however, the opening round is set to take place over the weekend of March 25-26.