All eyes were on the Butters deal as the AFL's trade period opened on Monday, when Hawthorn sealed a surprise early move for Essendon star Merrett.
The Dogs are yet to lodge restricted free agent paperwork for Butters.
Port can accept compensation, which would currently deliver pick No.5 in this year's draft, or match the Bulldogs' offer and force a trade.
The Power need draft capital to match Essendon's expected pick No.1 bid on Port academy prospect Dougie Cochrane and 2027 prospects Zemes Pilot and Louis Salopek.
"We're working through all those options at the moment," Port list boss Jason Cripps said.
"Clearly the compo pick is something we're trying to explore the market (for) in terms of what that might give us this year and future years.
"But we've also got the capacity to match and force a trade if we choose to do so.
"So it's just a little bit early, testing the market, working through all those options, but not sure which way we pivot at this stage."
The free agency period ends on Friday.
The Butters move stands as the most intriguing deal this trade period after Hawthorn finally landed Merrett, who tried and failed to join the Hawks last year.
Hawthorn paid up picks No.15 and No.25 in this year's draft, plus a 2028 second-round pick, in exchange for the seven-time Bombers best and fairest and three-time All Australian.
The Hawks now plan to lodge paperwork for Gold Coast free agent Ben King on Monday or Tuesday.
Port are unlikely to force Butters - who had significant interest from battling Richmond - into the draft but Cripps gave the Bulldogs a public warning to pay up.
"We've talked around if we're not given something that we think's fair value for Zak's standing in the game, and the posturing of pushing him into the draft and what does that look like?" Cripps said.
"I can say we've had a lot of conversations with (Richmond list boss) Blair Hartley over the journey, we're pretty close. So we want to avoid that.
"We've had enough conversations with the Western Bulldogs for them to have a really clear understanding of what our expectations are, and they're getting to work."
Asked about that, Hartley said: "I think I've probably spoken to Jason (Cripps) more than my wife this year.
"Everything's still live. It's day one of the trade period."
Bulldogs list boss Michael Regan labelled Butters "priority number one and two".
The AFL already flagged clubs cannot complete side deals to run alongside compensation picks unless the trade stands up on its own.
Port explored trading Todd Marshall to the Bulldogs for two first-round draft picks but that was knocked on the head by the AFL.
Defender Rory Lobb wants to stay while a potential trade for Hawk Finn Maginness will wait until the Butters deal is done.
"I think everyone can understand that Zak Butters is priority number one and two," Regan said.
Essendon should land Geelong's Jack Bowes but are no longer interested in Jack Viney, opening the door for the Demon to join West Coast, who are also eyeing Cat Gryan Miers.
Geelong are targeting Essendon defender Jordan Ridley and St Kilda ruckman Rowan Marshall.
Dumped GWS forward Jesse Hogan became the first trade on Monday, moving to his fourth club, Collingwood, for pick No.75.
Magpies great Scott Pendlebury moved to Gold Coast for pick No.65.
Only Carlton are in contention for Giant Lachie Whitfield after Melbourne withdrew interest.
The trade window closes on October 14.
