Madrid were paired with Juve in Friday's semi-final draw after the Bianconeri reached the last four for the first time since 2003.
Butragueno is delighted to see Massimiliano Allegri's men challenging once more for European football's biggest prize.
He said: "It's an honour playing a semi-final in the most prestigious competition. Juventus are a legendary club. It's great news for football and for this competition that Juventus return to this level."
Juve edged past Monaco in the quarter-finals while a late Javier Hernandez goal was enough to see Madrid overcome city rivals Atletico.
Madrid went into the second leg of that game without Karim Benzema and Gareth Bale and Butragueno is hopeful the pair can return in time for the opening game against Juve on May 6.
"It is a very balanced tie, we played against them and they are very competitive," he added.
"Hopefully we can recover our injured players so we can face this tie in the best shape possible. "
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