Financial terms of the deal weren't released.
Williams, an eight-year NFL veteran who played with the Jacksonville Jaguars from 2006 to 2008, joined the Falcons last Sept. 6 and started five games at left cornerback before suffering a season-ending knee injury. He finished with 18 tackles, one interception and two fumble recoveries.
The Falcons also announced that long snapper Mike Schneck has retired. Schneck spent 11 seasons in the NFL.
Copyright 2010 by The Associated Press