Thirty-year-old Williams re-joins on a permanent deal, initially until the end of the season.
It is his second time signing for the club after spending last season at Plainmoor.
The Yellow Army will remember his time at Plainmoor fondly after he scored 11 goals to help navigate the team away from the relegation zone.
Two of those goals came in the all-important 2-1 victory over Dover Athletic in the penultimate game last season.
Before joining Torquay, Williams made his name during a prolific period with Aldershot Town.
He scored 39 goals in eighty-nine games for The Shots before moves to Stevenage and Forest Green Rovers.
“We’re delighted to have him on board.” head coach Gary Owers told his club`s official website. “We got the opportunity to speak to him and things have moved along quickly and we welcome him into the squad.
“He didn’t need much persuading to sign. He knows the club well so it won’t take him long to settle in. I’m sure the supporters know who he is and hopefully he can come in and score some goals quickly.
“I watched him a lot when he was at Aldershot and I’ve tracked his career – obviously seen the game at Bromley earlier in the season when he scored three against us. He became available and was always going to be of interest.”
Williams will go straight into the squad for tomorrow’s match away to league leaders Macclesfield Town.
(Photo: Pinnacle Photo Agency)