The 20-year-old local lad has been a stalwart of the Under-23s team, captaining Ricky Sbragia’s side on many occasions, and showing his leadership qualities at the heart of the defence.
After twice being on the bench for the first team in the 2015/16 season, he was also part of the senior tour to the United States last summer.
Williams rose through the ranks at United and gained valuable experience both domestically and in the UEFA Youth League.
United have previously dealt with the Shrews when sending keeper Dean Henderson there on loan in the 2017/18 campaign.