UPDATE: Thrashers sign Jason Willaims?

UPDATE: TSN is now reporting that Williams has in fact signed a 1 year, $2.2 million deal with Atlanta.

Increasingly reliable anonymous blogger SensChirp is reporting that the Senators have signed unrestricted free agent Jason Williams.

Williams played last season with Chicago, tallying 13 goals and 23 assists in 43 games. His season was cut short due to a sports hernia, which caused him to miss 35 games.

Terms of the contract have yet to be released.

The potential signing will add some much needed depth to the Sens' second line—but has also raised questions as to the future of Antione Vermette.

Vermette has filed for salary arbitration, and there is speculation that he could be in line for as much as $3.5 million next season.

Vermette would make an attractive bargaining chip in a potential trade for the much coveted "puck moving defenceman" that the Sens have been after since free agency started.

Having lost out on Brian Campbell, Dan Boyle, and others, the thought is that Murray may go the trade route to improve the Sens' blue line.

Though the signing of Jason Smith (there are now three Jasons on the Sens) added some much needed depth, toughness and leadership to the Sens blueline, it is thought that the team is still in need of a powerplay quarterback to replace Wade Redden.

Much speculation has surrounded still-unsigned Jay Bouwmeester in Florida, who has also filed for arbitration. Florida GM Jacques Martin has experience coaching Vermette, and is thought to be fond of him.

Perhaps the Williams signing opens the door for a fourth "Jay" to be added to the Sens line-up?