Williams' contract comes with a pro-rated $700,000 base salary, but he can earn an additional $1.3 million in bonuses based on individual and team play in the regular season and Stanley Cup Playoffs.
Williams spent the last two seasons with the Hurricanes, but the 38-year-old spent the first half of the 2019-20 campaign mulling over his future. He captained Carolina to the Eastern Conference Final last year, registering 53 points in 82 regular-season games.
Already with three Stanley Cup rings, Williams' hunger for a fourth has brought him back to the NHL for a 20th pro season.
"There could be an opportunity there to come back and win a Stanley Cup," he told Sportsnet's Chris Johnston. "I mean, that’s really the only thing that should drive someone at this point and I wanted to have that opportunity again."
Other teams were interested in signing Williams, but he chose to stay in Carolina where his family resides. His hometown team, the Toronto Maple Leafs, reportedly made a pitch to him, and the Boston Bruins also inquired about his services.
Known as "Mr. Game 7" for his postseason heroics, Williams won a Cup with the Canes back in 2006 and won two more with the Los Angeles Kings in 2012 and 2014. He was awarded the Conn Smythe Trophy as playoff MVP with 25 points in 26 games during the 2014 postseason.