Reds manager Jurgen Klopp recently decided to make Loris Karius his number one choice at Anfield, having spent much of the season alternating between Karius and his Belgian rival Simon Mignolet.
But both goalkeepers are error-prone and Klopp's refusal to sign another shot-stopper in January is seen as a major obstacle to Liverpool's hopes of securing Champions League football next season.
Liverpool have been linked to a summer move for Roma's Brazilian goalkeeper Alisson, but Sidwell believes that there may be a better option closer to home.
“You have to look at Butland,” Sidwell said on the Sky Sports show The Debate. “He is definitely up there. If he went to a top club, he could be there for the next eight or ten seasons.”
Butland has been with Stoke since joining from Birmingham in 2013. He made his England debut in 2012 and, although appearances for his country have been few and far between, he is seen by many as a better alternative to Joe Hart.
He would probably be a much cheaper option for Liverpool than Alisson, who is valued at £70m. Sky sources in Italy say that discussions are under way for the Roma keeper, but the Italian club will not let their number one leave without a struggle.
Roma may demand more from Liverpool in particular, having sold Mo Salah to the Reds for just £37m last summer. Reports suggest that Alisson's price tag may force the Reds to look elsewhere.