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The Hornets and Williams have discussed parameters of a deal, but no agreement is imminent, sources told Yahoo Sports.
Williams, 28, is perhaps the best available power forward left on the free-agent market and it could be paramount to the Hornets to secure him.
The Hornets are left with a gaping hole at the position, where it is unclear if 2013 No. 4 overall pick Cory Zeller is ready to step into the starting lineup of a team with expectations to return to the Eastern Conference playoffs.
Williams averaged nine points and five rebounds in 25 minutes per game for Utah in 2013-14. After Atlanta made Williams the No. 2 pick in the 2005 NBA draft, he played seven seasons for the Hawks before a trade to Utah two seasons ago. For his career, Williams has averaged 10.8 points and 5.1 rebounds.
The Jazz still value Williams and haven't given up hope of re-signing him, but his desire for contract security may exceed what Utah's willing to pay, sources said.
Charlotte finished a two-day visit with Utah restricted free agent Gordon Hayward on Tuesday, but has yet to decide whether it will deliver him an offer sheet, sources said. Hayward is a play-making small forward, and the Jazz have maintained they're determined to keep him by matching any offer sheet.