Williams' agent, Wallace Prather, told Shams Charania of The Athletic and Stadium that the Clippers agreed to fully guarantee Williams' $8 million per year salary through the 2020-21 season.
While Williams' salary was already guaranteed for 2019-20, it was only partially guaranteed for 2020-21 at $1.5 million before the Clippers' goodwill gesture, per Spotrac.
Among players who remained on the team throughout the campaign, Williams has led the Clippers in scoring in each of his two seasons with the team.
After setting a career high with 22.6 points per game in 2017-18, the 32-year-old Williams averaged 20.0 points and a career-best 5.4 assists and 3.0 rebounds per contest last season.
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Of the 154 regular-season games Williams has appeared in for the Clippers, he has started just 20 of them.
Williams was something of a journeyman before getting traded to the Clippers in 2017, as he had stints with the Philadelphia 76ers, Atlanta Hawks, Toronto Raptors, Los Angeles Lakers and Houston Rockets during his first 12 NBA seasons.
He always showed dynamic offensive ability, though, and was named Sixth Man of the Year for the first time in 2014-15 with the Raptors. Williams has now won the award in each of his two seasons with the Clippers.
Even after the trade of Tobias Harris to the Sixers last season, Williams helped the Clips reach the playoffs. During L.A.'s first-round series against the Golden State Warriors, Williams averaged 21.7 points, 7.7 assists and 2.8 rebounds in six games.
The Clippers are somewhat in limbo as they await Kawhi Leonard's free-agent decision, but if Leonard does not sign with the Clippers, Williams is poised to be L.A.'s top offensive option again next season.
Williams is a steal at $8 million per year, and by guaranteeing his salary for the 2020-21 season, the Clippers showed their appreciation for his development into one of the NBA's most potent scorers.