The 14-time major winner has not been seen in public since, as speculation about his private life intensified.
Allegations followed about extra-marital affairs and on Friday, Woods admitted for the first time that he has been unfaithful to his wife Elin.
"I am deeply aware of the disappointment and hurt that my infidelity has caused to so many people, most of all my wife and children," said Woods in a statement.
New Zealander Williams has been the caddie for Woods for all but one of his 14 major championship wins.
The world's number one golfer was also Williams' best man when he got married in 2006.
There has been speculation as to how much Woods's inner circle knew of the "transgressions".
Williams added: "What people fail to realise is I (just) work for Tiger Woods.
I have always stated that my last caddie job will be caddying for Tiger
Steve Williams
"I live in New Zealand, I travel to and from New Zealand to caddie for Tiger Woods. I am not with him 24/7. Whilst I am a very good friend of his... I don't know what he does off the course.
"Tiger just said he needs a break and I don't want to put any pressure on the guy.
"He will know in his mind, and his family will know in their mind, when it is the right time for him to return to playing golf.
"He will have the right people counselling him and between the people that counsel him, his wife and his immediate friends, when he is ready to come back he will be ready to come back.
"I am committed to him. I understand he needs a break to sort his personal stuff out. And I will be there for him when he wishes to return to play."
And Williams reiterated that if he was to be axed by Woods, that would be the end of his caddying career.
"I have always stated that my last caddie job will be caddying for Tiger," he added.
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