Williams was widely expected to make the move to Barcelona over the summer, with the Catalan outfit believed to have triggered the €58m (£48m) release clause in his contract.
However, the Spain international decided to remain with Athletic in order to represent the Lions in the Europa League this season.
The attacker starred for his Basque club during the 2023-24 campaign, scoring eight goals and registering 19 assists in 37 appearances in all competitions, and he then played a vital role in Spain winning Euro 2024, scoring twice and registering one assist in six outings, including a goal in the final against England.
The 22-year-old has found it difficult to show his best form this term, scoring two goals and registering five assists in 21 appearances, but he is still one of the most in-demand attackers in European football.
Man City 'join the race' for Williams
According to Fichajes, Man City are firmly in the running for Williams, with the Citizens identifying him as the ideal player to boost a side which is currently struggling for positive results.
Guardiola's team have been victorious in just one of their last 10 matches in all competitions, suffering seven defeats in the process, including a 2-0 reverse to Juventus in the Champions League on Wednesday night.
Erling Haaland has again been among the goals this term, managing 18 in 22 appearances, but no other player in the Man City squad has registered more than three in all competitions during the 2024-25 campaign.
Man City are expected to be active during the January transfer window, with Haaland in need of support in the final third of the field, and Williams is believed to be viewed by the English champions as the ideal addition.
Are Barcelona still in the race for Williams?
Barcelona are believed to have cooled their interest in Williams, with the club currently having other priorities in the market, namely bringing in a long-term replacement for Robert Lewandowski at centre-forward.
Arsenal and Liverpool are both believed to be active when it comes to the developments, and it does appear that Williams will now make the move to the Premier League during next summer's transfer window.
A mid-season departure is highly unlikely, as Williams is believed to be determined to help Athletic reach the Europa League final, which will be held at the Basque outfit's San Mames stadium.
Williams has been with Athletic since 2013, with his first-team debut coming in 2021, and he has made 143 appearances for the club in all competitions, scoring 22 goals and registering 31 assists.
A move to the Etihad Stadium could spell bad news for the likes of Phil Foden and Jack Grealish, who have both struggled to make their mark during the current season.
Written by
Matt Law