Williams and San Francisco agreed to terms Monday on a two-year, $50 million contract extension, Adam Schefter of ESPN reports. Williams' extension provides him a salary reflecting his caliber of play that is more feasible than the tremendous $45.3 million number he had carried for 2026. Though he's now heading into his age-38 season, Williams is as sure a bet as exists in the league to continue operating at an elite level for the course of his new extension, which keeps him with the 49ers through 2027. HIs presence provides increased stability for the fantasy value of veteran RB Christian McCaffrey, as well as QB Brock Purdy.
49ers GM John Lynch said Sunday that talks with Williams regarding a reworked contract have "intensified" over the last week, Eric Branch of the San Francisco Chronicle reports. Williams had this $10 million option bonus declined by San Francisco on March 20th, and he currently carries a $46.3 million cap number for the 2026 season. The team will likely have to lower that number to keep the three-time All-Pro and twelve-time Pro Bowler on the roster. Lynch also said he feels like the two sides are "on the precipice of something good happening, but we'll see." Williams has started all 84 games that he's played in San Francisco, and he's entering his age-38 season in 2026.
The 49ers declined Williams' $10 million option bonus Friday, instead adding it to his base salary for the 2026 season, David Lombardi of SFStandard.com reports. If it would have been exercised, the 49ers would've been able to prorate the $10 million across the next four years. Williams' cap number for 2026 is now a whopping $46.3 million, though the sides are expected to continue to work on a new contract.