Chelsea are thought to have made a move for the England youngster in January, while champions City were said to have made contact with Birmingham regarding his availability last season.
However, the 20-year-old, who has agreed to join Stoke City at the end of the current campaign, has admitted that he rejected two of the Premier League's bigger clubs because he wanted to play on a regular basis.
"I had the chance to speak to Chelsea but I didn't feel like I needed to," Butland told The Times. "It's a fantastic club and it would be a great honour to play for them at some stage.
"But I've got a chance to join a club where I feel I can better develop my game and take it to the next level, which I didn't feel at some of the other clubs I rejected.
"I turned Manchester City down about a year ago. Again I was flattered but Joe Hart is their undisputed No 1 and he was a main factor."
Butland is believed to have cost Stoke around £3.5m.