Cr Butcher, a third-term councillor, said yesterday she was back to full council duties after a period "sidelined" by personal issues from late last year.
She would continue her role until the next local body elections on October 12, 2013, but would not be standing again, she said.
"I will stick it out to the end of the term and I won't be standing again.
"I think nine years is long enough, quite frankly, and [I have] other things to do."
Cr Butcher's announcement comes after she confirmed last month that a "serious breakdown" was behind her decision to cut back on council work.
She was granted leave of absence on health grounds last November after walking out on the new council's first meeting in October and then launching a scathing attack on Mayor Dave Cull's committee selections.
Cr Butcher, whose mother died last year, said at the time the only thing that had stopped her resigning was the cost to the city of holding a by-election.
She was back at the council table for January's draft annual plan meetings, but skipped last month's annual plan submissions in favour of "nanny duty" for her pregnant daughter.
Yesterday, Cr Butcher said she remained "absolutely" committed to her duties despite her decision to stand aside at the next election, and was enjoying getting back "into the fray".
"It's going good. I'm enjoying it again, which is lovely.
"It's no fun if you're not enjoying work, is it?"
The birth of her latest grandson last month had helped "put things in perspective", she said.
"I love him dearly and I want the planet and the world to be a better place for him, so I better get back in there and start battling again," she said.
She had already approached some other councillors, offering to take on extra work if required, and looked forward to using the next two years to "shake a few cages".
