The All Black centre, whose contract with the New Zealand Rugby Union ends at the end of the year, wanted A$800,0000 (NZ$1.02 million) to play in the competition he controversially left in 2008, Rugby League Week reported.
An unnamed club coach told the magazine the 26-year-old's manager Khoder Nasser has stated the former Bulldog would return to the NRL only if the league promised he would be the highest paid player in the competition.
"That was one of a host of conditions he set down. It was about that stage we lost interest,'' he told Rugby League Week.
The magazine also said Nasser was refusing to sign Williams for any longer than a year, and he would have to be able to continue boxing professionally on the side.
The Bulldogs, Roosters and Wests Tigers were all believed to be interested in signing Williams but Nasser's demands are hindering negotiations.
Williams played 73 games for the Bulldogs before walking out of his contract to play rugby for Toulon in France. He then signed with the NZRU, playing for the Crusaders and the Chiefs, and the World Cup-winning All Blacks last year.
