Butt was suspended for five years for his role in spot-fixing during the Pakistan and England Test match in August, 2010.
Over 1,400 prisoners went on hunger strike at Kot Lakhpat Jail in Lahore on Wednesday where Indian national Sarabjit Singh was killed, to protest the hostile attitude of the prison staff.
Chief Selector Wahab Riaz held a press conference to formally announce the immediate withdrawal of Butt's name from the consultancy panel.