The deal includes a player option on the fourth year, a league source said.
Williams had offers in the $15 million-a-year range to leave the Hornets – the Brooklyn Nets seriously pursued him – but his comfort with the franchise and coach Steve Clifford, and the chance to return to build on the team’s 2016 playoff berth led him to stay for less money, league sources said.
Williams’ agent, Jim Tanner of Tandem Sports, completed the talks with Charlotte general manager Rich Cho on Saturday afternoon, sources said.
Williams, 30, had the best season of his 11-year NBA career, averaging 11.7 points and 6.4 rebounds for the Hornets. He evolved into Clifford’s defensive leader and was a top priority for the Hornets to retain in free agency.
Williams joined the Hornets on a two-year, $14 million contract in 2014.
Williams is the second cornerstone player on Charlotte to accept less money to remain with the franchise and Clifford, with Nic Batum's five-year, $120 million deal being less in annual money than had been available to him on the market.
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