Red Wings forward Jason Williams signed a two-year contract worth $3.2 million Thursday, avoiding a salary arbitration hearing scheduled for Monday.

Williams, who turns 26 on Aug. 11, said from his home in London, Ontario, that he was "happy to avoid" the hearing.

"My agent was prepared to go if we couldn't come to an agreement," Williams said. "I'm happy, and Detroit's obviously happy as well. We came up with a fair deal."

General manager Ken Holland said: "In the end, we found a way. Anytime you can avoid arbitration ... it's probably in the best interests of both sides."

Williams started last season on a torrid pace, scoring three goals and 10 assists in the first 13 games. He finished with career highs in goals (21), assists (37), points (58) and games played (80). He had entered the season with 17 goals and 15 assists in 95 NHL games scattered over four seasons with the Wings.

"Coming into the season, I knew it was an important season for me," Williams said. "Mike Babcock called me in the summertime and told me he was going to give me an opportunity to play. I was a little more confident I was going to get a regular shift."

Williams said he believes he can improve upon last season's numbers. He will be counted on more after the retirement of captain Steve Yzerman and the loss of 40-goal scorer Brendan Shanahan, who signed with the New York Rangers.

"With Shanahan gone, there's going to be opportunity for somebody to have more ice time," Holland said. "Somebody's going to have to play with Pavel Datsyuk. I think it's up to him to come to camp and build off of what he did last year."

Williams said last season was the first time he regularly played more than 10 minutes a game in the NHL.

"If I can consistently keep doing that, I'm confident in my game," he said. "What I've done this summer to get better, I'm definitely going to help the team. I'm really bearing down."