The sides reached a three-year deal that includes a team option for the third season, according to ESPN's Adrian Wojnarowski and Yahoo! Sports. The contract is worth $24 million, according to ESPN's Bobby Marks. The third year is guaranteed for $1.5 million that becomes fully guaranteed if he's not waived by July 15, 2020.
"Lou is an extremely valuable member of our team," Clippers president Lawrence Frank said in a statement. "Both on the floor and in the locker room, Lou exhibits many of the characteristics that we value. He is professional, committed, and very competitive."
Williams openly acknowledged that he appreciated the long-term commitment.
"It was nice for the organization to commit to me the same way I've committed to these guys this year," Williams told reporters Wednesday. "In years past, these scenarios don't usually go my way, so it was nice for one to go my way and [for me to end up] somewhere I wanted to be. ... It's just nice to have that one consistent -- you know you're going to be somewhere for an extended period of time."
Williams, 31, is averaging 23.3 points and 5.3 assists per game -- both career bests -- and is earning $7 million in the final year of his previous contract. The veteran has averaged 13.5 points during his 13-year career and has also played for Philadelphia, Atlanta, Toronto, the Lakers and Houston.
"I feel like I'm a quality basketball player, and usually quality basketball players don't get moved so much," said Williams, who scored a career-high 50 points against the Warriors on Jan. 10. "I understand I had a relatively cheap deal considering the numbers I had. It was an expiring contract, and that's enticing to teams trying to make playoff runs.
"I understand the business part of it, but personally it's like my kids didn't know who to root for anymore. They were confused -- they were walking around with Rockets shorts and Lakers jerseys. They just didn't know what was going on."
After trading All-Star forward Blake Griffin to the Detroit Pistons in a deal that brought Tobias Harris and Avery Bradley to Los Angeles, the Clippers are 27-25 and a half-game out of the final playoff spot in the Western Conference heading into Wednesday's games.