In the first game of the 2007 season, Williams was sent off and subsequently suspended for two weeks for a high tackle on Andrew Johns. He thus became the first player of the 21st century to be sent off in a first-round game. Speculation surrounding Williams's playing future ended when he re-signed with Canterbury on 9 March 2007 for a five-year contract worth over $2.5 million, extending through to the 2012 season. Williams was selected to play for the Kiwis as a second-row forward in the 2007 Anzac Test loss against Australia. He went on to play in 21 matches for the Bulldogs; scored fourteen tries and topped the competition, for the second successive year, for most offloads. However, Williams broke his forearm in a tackle on Nathan Hindmarsh during the semi-final against the Parramatta Eels. His team lost the match, and Williams was again ruled out from representing New Zealand in the post-season 2007 Great Britain Tour. He was nominated for 'Second-Rower of the Year' at the 2007 Dally M Awards; however, Manly-Warringah Sea Eagles second-rower Anthony Watmough won the award.