The former Middlesbrough captain and Socceroos utility feels, according to a well placed club source, "disrespected" by his hometown team, with coaching staff and management effectively alienating him from the senior squad.
Just eight games into his A-League career, Williams, 28, has been forced to train and play with the youth team on a number of occasions and a peace accord with the Glory hierarchy appears to be no longer an option as the club refuses to let him join Sydney FC and Williams waits for a contract clause allowing him to sign elsewhere to be activated.
"Rhys came back to play and help Glory as best he can but now feels the club are strangling his career," said the source.
"He believes he's been disrespected and has been treated quite poorly and the relationship has totally broken down.
"The club have basically told him they will only release him to Asia and not the A-League because they fear he'd go somewhere else and do well, which would embarrass them."
Williams has a clause in his contract stipulating that unless he plays 20 games or more, he is free to sign a pre-contract elsewhere for next season - and with Sydney FC circling - that appears to be his route out of nib Stadium in what has become a standoff between the two parties.
With Glory expressing concerns over Williams's fitness, he has shed 10 kilos, but that has done little to enhance his cause.
"He has worked hard to do what Kenny Lowe and the coaching staff have asked of him but it's just not worked out," added the source.
The PFA have been consulted by the Williams camp in a bid to hasten his exit but since Glory have not breached any rules in their conduct, Williams has been left with little choice but to sit it out.
"There may be options in Asia but Rhys knows he needs to establish himself back in the A-League first and after a lot of injury setbacks get his career up and running again ... but it won't be with Perth Glory.
"He came home in good faith and is now going to wait it out if the club refuse to either play him or release him to another A-League team."
