The Manchester Evening News says United have informed Williams they could not guarantee he would get fulfilling playing time back at the club after a season-long loan with Norwich City.
Williams, 21, has played 29 times for Norwich and stressed earlier this season he had no interest in staying at United if he was a bit-part player.
Luke Shaw and Alex Telles have started a near-equal amount of Premier League matches for United at left-back this season and could both remain in new manager Erik ten Hag's squad.
United have told Aaron Wan-Bissaka he is available for transfer whereas fellow right-back Diogo Dalot is in new manager Erik ten Hag's plans.
The potential departures of Wan-Bissaka and Williams would give Ten Hag leverage to recruit a new full-back.
Source: Tribalfootball
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