The three-time Oscar nominee will star in the Roundabout Theatre Company's production opposite Alan Cumming, who will reprise his Tony-winning role as the MC.
Performances are reportedly set to start early next year.
The casting of Williams, which has not been officially announced by Roundabout Theatre Company, was first reported Tuesday on Lemonwade.com.
An earlier Roundabout revival of "Cabaret" ran on Broadway from 1998 to 2004 and starred Cumming and the late Natasha Richardson, who won a Tony for her role as Sally.
A string of well-known actresses have played the part of Sally on stage and screen, including Judi Dench, Brooke Shields and Liza Minnelli, who won an Oscar in 1973 for her performance in the film adaptation.
Williams, who starred in television's "Dawson's Creek," is also known for her film roles in “Brokeback Mountain,” “Blue Valentine” and