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Additional terms of the deal were not immediately known.
"It's a good deal for Louis," Merle Scott, Williams' agent, told the Daily News. "It gives him a chance to grow with a team that's building and allows him to stay with the team he came into the league with."
Sixers president/general manager Ed Stefanski declined comment.
Williams, the 45th pick in the 2005 NBA draft as a high school senior out of South Gwinnett High School in Snelville, Ga., appeared in 80 games last season and averaged 11.3 points in 23 minutes.
He averaged 12.0 points in the Sixers' six-game playoff run against Detroit.
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