The Dutch full-back has struggled to make an impact at Old Trafford and has agreed a contract with the Russian outfit following reports of Luke Shaw's imminent arrival
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The Netherlands Under-20 international has found opportunities hard to come by with Patrice Evra first choice at full-back for the Red Devils, and the France veteran's new one-year contract looked set to keep Buttner on the sidelines.
With Luke Shaw also set to agree a £160,000 deal with the 20-time English champions, the former Vitesse youngster may well have fallen further down the pecking order.
But having previously revealed that he was close to signing a deal with Dinamo, the club has now confirmed the signing along with Bulgarian defender Stanislav Manolev.
Speaking to the club's official website, Buttner said: "I want to play in the Champions League and win trophies.
"Dinamo have a very strong team and I believe we can fight for first place this season."
After finishing fourth last season, Dinamo will take part in the Europa League in 2014-15.