The Welshman had been placed in temporary charge after former boss Phil Parkinson left for Hull in June.

Williams has overseen the U's pre-season training over the past few weeks and will be officially unveiled at a press conference on Saturday.

Colchester chairman Peter Heard had undertaken a five week search which culminated in the appointment of the 44-year-old former Wales international.

Williams is familiar with the surroundings at Layer Road as he was assistant to both Parkinson and previous manager Steve Whitton.

Parkinson led the Essex club to promotion to the Championship for the first time in the club's history but handed in his resignation when he was refused permission to speak to Hull about their vacant managerial position.

Heard initially refused to accept his resignation and after a courtroom wrangle the Tigers eventually agreed to pay Colchester �400,000 compensation.