The 5'5" winger made just 23 league appearances last season, and has so far failed to justify the £150,000 City paid Chesterfield for him two years ago.
However, the 24-year-old feels his fortunes are set to change after a discussion with Peter Taylor.
Williams said: "We had a chat at the start of the summer and the gaffer made a few points which to be fair I agreed with. I knew I couldn't take anything for granted if I wanted to be part of his plans and that I'd have to work extra, extra hard.
"I did a lot of work on my own and I'm hoping that has paid dividends which I think it has. I feel fitter and sharper and I'm really enjoying things."
After signing winger Jason Price from Tranmere, it was rumoured that Williams was on his way out, but he says he sees his future in Hull.
"There was speculation during the summer which I'm aware of but I never wanted to leave. I'm happy here and I want to fight for my place," said the former Mansfield trainee.
He added: "I've got to keep going. I can't rest on my laurels but I hope to force my way back into the side."
Elsewhere, Owen Morrison - who had a very brief spell on loan with City at the start of last season - is to sign a one-year deal with Stockport.