Williams had missed the past 11 games with a sprained left shoulder. He is averaging 16.9 points and 5.1 assists for the Cavaliers, who have won 13 in a row and have the NBA's best record at 43-11.
Forward Leon Powe, who missed the season's first half while recovering from knee surgery, has not been cleared. Powe was hopeful he could make his Cavaliers debut against the Nuggets. He was signed during the offseason from Boston.