Williams split last season with the Hawks and Los Angeles Clippers. He came over in a trade that sent Rajon Rondo to the Clippers.
Playing in his second stint with his hometown franchise, Williams averaged 10.0 points and 3.4 assists in 24 regular-season games with the Hawks. His minutes were more limited during the team's postseason run, leading to his scoring dipping to just 7.7 points per game.
"We're a really confident group of guys and we're kind of naive to the process of winning basketball games," Williams said of his Hawks teammates during the playoff run. "I don't think we ever lack confidence. I think no matter what, we always feel we have an opportunity to go out and give ourselves a chance to win a basketball game."
Williams' return should not be seen as much of a surprise, given he appeared to fit in with teammates and enjoy playing in his hometown.
The Hawks are understandably bullish on taking another leap forward after reaching the conference finals last season and have focused on retaining their core.
The team already re-signed John Collins to a five-year, $125 million deal.