The 17-year-old left-back has been on the club's books since the age of six and will now continue his journey after putting pen to paper at the AXA Training Centre.
Williams broke into the Reds' U18s side in the 2024-25 season and made a return from long-term injury at the start of the current campaign.
Born in Liverpool, he has been capped by Scotland at U17 level.
