The 25-year-old will now see his career as a Bulldog extended to 12 years, having first arrived at Whitten Oval through the 2015 National Draft.
Williams would play six games in his first year with the club as the Bulldogs broke their premiership drought, and he would double that amount the following season as he looked to construct a role under senior coach Luke Beveridge.
By 2020, Williams would be a staple in the Dogs' senior side, playing 18 that year before featuring in the grand final a season later.
From 2021-2023, Williams would play in at least 22 games per season as a utility option that was able to feature across all three lines of the field.
This season, Williams was able to exercise his rights on the open market as a free agent but has instead committed to the Dogs' cause under Beveridge for a further four years.
“It was a pretty easy decision for me in the end,” Williams said in a club statement.
“I've built a lot of close friendships since coming here eight years ago and I've loved my time at the Bulldogs so far.
“I still feel like there is some exciting times ahead for us, and we're all hungry for more success after a disappointing finish to this season.”
“It's a really tight group and we're all looking forward to getting stuck into pre-season in the next few weeks.”
Williams has played a total of 127 games for the Dogs across his eight seasons in the AFL, including six finals appearances.
His re-signing follows the recent retention of fellow flanker Caleb Poulter, who penned a two-year extension with the Bulldogs this week after joining them in May through the Mid-Season Draft.