"We said that we needed goal-scoring and veteran leadership, and Justin will bring us both," general manager Ron Francis told the Hurricanes website. "He believes in what we are doing here and is returning to Raleigh to help the Hurricanes take the next step."
Francis also said Williams would be in consideration to take over as Hurricanes captain.
"I wouldn't say no. That's a possibility," he said. "I would certainly think he could wear an 'A' if nothing else. It's a process. You don't just step in a room and things change. We will have to see how preseason and training camp goes and we'll see where [coach Bill Peters] is at, how comfortable he is with making a decision at that point."
The Hurricanes missed the Stanley Cup Playoffs in each of the past eight seasons but have shown improvement under Peters, finishing eight points out of the second wild card into the playoffs from the Eastern Conference last season.
"The thing is, I don't think you ever know," Williams said when asked if the Hurricanes are close to contending. "You know when you know and you have to go through trying years and failure before you get to your goal. Carolina, there's no question, they haven't made the playoffs since 2009, so that's a long time. So we're done losing and it's time to climb the ladder and get relevant. I really like this team. I like where it's going and I think you can ask anyone within the NHL who has played against the Hurricanes, they are a tough, tough team to play against, and I experienced that playing for Washington and I want to help in any way I can to get this team to where it should be."
Selected by the Philadelphia Flyers in the first round (No. 28) of the 2000 NHL Draft, Williams has 682 points (273 goals, 409 assists) in 16 seasons (1,080 games) with the Capitals, Kings, Hurricanes and Flyers, and has 94 points (36 goals, 58 assists) in 140 NHL playoff games.