The 22-year-old was being lined up for a marquee move to Camp Nou or the Premier League after a stellar 2023-24 campaign, in which he shone during Spain's run to Euro 2024 glory with the first goal against England in the final.
However, no suitable offers were forthcoming for Williams, who has struggled to hit the same heights he managed last season in the current term, only contributing two goals and five assists in 23 games.
Nevertheless, the winger is still understood to be on the radar of several European giants, most notably Arsenal and Barcelona, while Manchester City, Liverpool and Bayern Munich have also been credited with an interest.
Williams only signed a new contract with Athletic Bilbao in December 2023, but those terms reportedly include a release clause set at just shy of £50m, making the Basque side powerless to prevent his exit if a club forks out that amount.
Athletic to move for Championship star as Williams replacement?
Ex-Arsenal chief could hold the key as Athletic 'identify Williams replacement'
According to Sport, Athletic are now making contingency plans in case of Williams's departure next summer, and the club have earmarked Norwich City attacker Borja Sainz as a top candidate to replace him.
The 23-year-old has been setting the Championship alight with the Canaries in the current campaign, scoring a league-high 15 goals and providing two assists in 24 appearances.
Sainz comfortably sits at the top of the Championship's scoring charts this season, netting five more goals than closest challenger Josh Maja (West Bromwich Albion), but his contract only runs until the summer of 2026.
Despite the attacker's sensational form in the second tier this season, the report claims that Athletic could sign him for as little as €2m (£1.7m) thanks to his contract situation at Carrow Road.
Sainz also meets the Basque criteria needed to represent Athletic Bilbao; he was born in the Leioa municipality and previously represented the club as a youth player from 2012 to 2017.
Could former Arsenal man help Gunners in Williams pursuit?
It is not clear whether Norwich have a new lucrative contract in the works for Sainz, but they would come under serious pressure to sell him for a cut-price fee next summer if he opts against renewing.
The Canaries would boost their chances of retaining the Spaniard's services with promotion to the Premier League, but they only lie 12th in the Championship table at present, seven points off the playoff places.
If the Carrow Road outfit do concede defeat in their efforts to keep the Championship's top scorer, selling to Athletic would open the door for Williams to leave, and a former Arsenal staff member could play a key role in that.
Ben Knapper - who was an analyst and loans manager at Arsenal from 2009 to 2023 - became Norwich's new sporting director last summer and is overseeing the club's incomings and outgoings as part of his role.
However, Sainz joining Athletic hardly guarantees a move to Arsenal for Williams, who will no doubt be courted by several Premier League and La Liga powerhouses next summer.
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