San Francisco declined to exercise Williams' $10 million option bonus last week but continues to explore a restructured deal.
According to Jason La Canfora of SportsBoom, the two sides remain far apart in negotiations. He added that, per league sources, it is misleading to assume the veteran offensive lineman will finish his career with the team.
"They aren't anywhere close to a deal yet," one source familiar with the situation told La Canfora, "and I don't think anything happens unless the 49ers make a big move."
While the 49ers are aiming to reduce Williams' salary-cap hit, he reportedly has little incentive to accept a pay cut.
"Williams doesn't have much motivation to play for anything less than the $33M in cash he is set to earn in 2026, and the 49ers clearly aren't comfortable with that, hence the renegotiation talks," La Canfora wrote. "Williams is acutely aware there is a robust market for his services as a free agent or through trade."
Williams will turn 38 ahead of the 2026 campaign, adding another layer of complexity to the negotiations.
Head coach Kyle Shanahan was asked about the situation over the weekend while in Los Angeles for the Fanatics Flag Football Classic.
"No updates from me," Shanahan told NBC Sports Bay Area. "I actually stay pretty much out of that. I know John, and everyone's working hard to do that. I believe they'll get that done. We love Trent too much, and eventually that'll work out."
For now, the 49ers and Williams appear locked in a standoff, with significant financial hurdles still to overcome before any deal is finalized.
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