Bring 1 1/4 cups wine to boil in small saucepan over medium-high heat, and cook until reduced to 1/3 cup, 15-20 minutes; set aside.

Bring remaining wine and sugar to boil in large saucepan, stirring frequently. Stir in pectin, lemon juice and butter and return to a vigorous boil, stirring constantly for 1 minute. Remove from heat and stir in reserved reduced wine.

Transfer jelly to jars with tight-fitting lids and let cool to room temperature. Then cover jars and refrigerate. Let jelly set for 12-24 hours. Jelly can be refrigerated for at least 2 months.