Athletic Bilbao tie down Williams with eight-year extension amid Barcelona links
Athletic added that Williams' transfer release clause had been increased by more than 50%, with reports in Spanish media saying the earlier clause was worth around €62m.
The 22-year-old Spain international, whose previous contract ran until 2027, is one of Athletic's most prized assets and has made 167 appearances for them in all competitions.
"When it comes to making decisions, for me, the most important thing is to listen to your heart. I am where I want to be, with my people, this is my home," Williams said in a statement.
Last month, Athletic rebuked fans who erased Williams from a mural featuring him and his brother Inaki, who also plays for the club, amid reports linking him with a move to LaLiga champions Barcelona.
The mural was defaced after Barca sporting director Deco said they could target the winger, who scored in last year's European Championship final against England to guide Spain to a record fourth title.
Meanwhile Arsenal defender Takehiro Tomiyasu is leaving the club after mutually agreeing to terminate his contract.
The Japan international is recovering from knee surgery having played just six minutes of football last season.
Tomiyasu faces up to another five months out as he continues his rehabilitation from the operation he underwent in February.
His existing deal was due to expire at the end of next season but BBC Sport reports Arsenal and Tomiyasu have reached a contractual settlement to end his contract.
Reuters/Agencies
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