Butt has helped Hughton guide Newcastle to the top of the Championship table and has seen enough to believe the former Tottenham coach and his right-hand man Colin Calderwood are the right men to secure promotion at a club that is still up for sale.
Alan Shearer appointment at Newcastle draws closerIndeed, Tyneside businessman Barry Moat is due to hold talks with the club this week over his plans to buy the club from sports retail tycoon Ashley although he is struggling to meet his £100 million asking price.
'The team is showing there is belief here, and Chris and Colin deserve the job now,' Butt, 34, said.
'Hopefully they get it and that will mean we can all concentrate on the job in hand.
'People keep looking at us and say 'they still haven't got a proper manager' even though Chris is acting manager.
'He's not done anything wrong, but he hasn't been named as boss. So it would be nice to see Chris get the job.'
Despite mounting speculation that Newcastle managing-director Derek Llambias who runs the club for Ashley - will ask Hughton to take the job at least until the end of the season, he is focusing on Saturday's trip to Nottingham Forest
'It's business as usual,' Hughton, 50, said. 'The best way to approach it is to keep doing the job I'm doing. I've continually stated I'll do it for as long as I'm asked.
'The most important thing for me is results, and keeping the team at this end of the table. Everything around that, for me, comes second, and when there are definite things to be said, they'll be said.'
Hughton is widely regarded as a right-hand man thanks to his sterling service at Tottenham where he worked for the likes of Martin Jol but he has admitted having managerial ambitions of his own.
'It was always something I thought about, but I've always been guided by the situation that I've been in,' Hughton said.
'I've stayed in the area I've stayed in, but it's something that's been on my mind.
'It's never been the most important thing for me that's been staying in the game, and doing the best job I can in whatever position I'm in. I'm happy to stay for as long as I'm asked to stay.'