The young centre-back was gaining experience in the Championship, but the Reds have brought him back to the club after only 17 appearances.
Williams did well initially and became a fixture in the first team. However, the 21-year-old lost his place in the side over the last five games.
It has not been smooth sailing for Blackpool this season. They are second-bottom in the table and recently sacked their manager Michael Appleton after a poor run of results.
Blackpool will reportedly replace Williams with Brentford defender Charlie Goode. The Seasiders are in advanced talks to sign the 27-year-old, who has not made a league appearance this season.
Williams’ return will allow Nat Phillips to exit on loan. The 25-year-old is looking to leave the club temporarily or permanently before the close of the January transfer window.
Following the injury to Virgil Van Dijk, the thinking was that Phillips would replace the Dutch international. But he did not make the squad for Liverpool’s game against Chelsea.
Ibrahima Konate and Joel Matip started against the Blues and kept a clean sheet in a dour game. Phillips has only made five appearances for Liverpool this season.
After helping Bournemouth win promotion to the Premier League last season, the Cherries were interested in making the move permanent.
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