Williams’ current contract with the Australian side is set to expire next month and the forward has been linked with a host of European clubs.
“We think David is a great young talent and we’ll do everything we can to keep him,” Sydney boss Scott Barlow was quoted as saying on the Sydney Morning Herald.
“I’ve heard there might be interest from Crystal Palace, but since he arrived here he’s settled in extremely well and we’d love him to stay.
“We’re in the process of talking to him about a new contract, and we’re hopeful. [Coach Vitezslav Lavicka] has made it clear he believes David can play a big role next season.”