The 20-year-old defender will continue to train in the hope of returning to play for Collingwood in late April.
However, his immediate future will to be determined when Albany District Court decides on what sentence he will receive for being found guilty of intentionally causing grievous bodily harm in an incident that occurred in Albany in December 2012.
Williams decided - after consultation with a range of health and legal professionals as well as his manager, the AFLPA and the AFL - it was not in his or anyone else's interest to attempt to play AFL football before the verdict.
"At the moment I’m devastated. I’m in a situation I never imagined I would be in and trying to work through the challenges of that while trying to play is something I’m struggling with," Williams said.
"I made a mistake, and I’m sorry for that. I’ve attempted ever since to do the right thing and the right thing for me, my family, friends and everyone else is to have some time out.
"The strain on my family and the distraction this has created for the club is something I’m not comfortable with."
Williams has been struggling to maintain a focus on football after the decision was handed down but the Magpies have been resolute in their support of him during the period.
In a statement, Collingwood reiterated its position on the matter: "Marley has shown great remorse for what occurred and accepts responsibility for what he did. Collingwood does not condone violence of any description, and does not want to understate what transpired, but over the past 15 months Marley has been an exemplary member of the football club."
Earlier on Friday, the Magpies announced that Williams had left Collingwood's training camp at the Gold Coast and flown back to Melbourne.
The 20-year-old defender was set to play against the Suns in a practise match on Sunday, but returned home prior to Friday morning's training session at Metricon Stadium.
Former captain Nick Maxwell confirmed Williams had left the camp, saying it had been a stressful time for the West Australian.
"Just to get him away from here, get his head clear, rather than train with us flat out," Maxwell said.
"Obviously it's been tough for him. The last couple of weeks have been tough for him and long days, so we're just trying to give him a break from it all."
Maxwell said the drama surrounding Williams had not been a distraction for the Magpies, who are on a five-day camp in Queensland.
He said the club knew this time had been coming since the incident happened 15 months ago, and now all Collingwood was concerned about was supporting Williams.
"Basically (we have just been telling) him we're there for him," Maxwell said.
"There's not much you can do. If he wants to come and have a chat to you he can, if he doesn't, and wants to keep it to himself, then he does.
"All you can do is be there and offer that support and if he takes it up, he takes it up."
Maxwell would not be drawn into any possible suspensions for Williams.
In better news for Collingwood, Maxwell confirmed defender Alan Toovey would play his first match since a knee reconstruction early last season.
"He's our best one-on-one defender, he's a guy who's really important to us, the way he attacks the footy … and offensively he offers a lot as well with his speed," Maxwell said.
"He's crucial for us and we want to make sure we can get him back for round one."