The primary issue centers around the lack of guaranteed money left on Williams’ contract. The 49ers placed Williams on the Did Not Report list on July 25, but with the roster cut deadline looming, the team faces a critical decision. By 4 p.m. ET on Tuesday, all 32 NFL teams must reduce their 90-man training camp rosters to 53 players.

Williams, an 11-time Pro Bowl selection, is currently under a six-year, $138.06 million contract, with $74.76 million owed over the next three seasons—none of which is guaranteed. He has already passed the halfway point of the deal, entering his fourth year.

49ers head coach Kyle Shanahan acknowledged the possibility of Williams’ absence last month, expressing hope that the situation would be resolved. “It’s something I knew could be a possibility, and I was hoping that he would be here,” Shanahan said. “But I feel pretty confident that it will all work out in the long run and he’ll be here, and we’ll get on the same page with everything.”

Shanahan also mentioned last week that he hoped a deal with Williams was close. Williams has been a first-team All-Pro for the past three seasons and is entering his fifth season with San Francisco, who acquired him from Washington in exchange for third- and fifth-round draft picks.

Williams, a seven-time Pro Bowler during his nine seasons with Washington, sat out the entire 2019 season due to a dispute over the team’s handling of his health, including a rare form of cancer, and his contract. His current contract carries a cap hit of $31.6 million for 2024, with earnings of $20.05 million this season and an additional $750,000 in game-day roster bonuses. Under the existing terms, Williams is due $22.5 million next season and $32.21 million in 2026.