The former Wales international has pulled out of an agreed deal at the 11th hour – and is now set to sign for League Two rivals Gillingham.

It is a huge blow for City, who were preparing to unveil him as their player later today. All the relevant paperwork had been agreed between the club and Williams’ representatives.

It is understood that Williams was in a hotel in Leeds, paid for by the club, ahead of medical and media demands when they received confirmation that the move was off.

His agent called late last night to inform City of the 29-year-old’s change of heart following an offer from Gillingham.

The stunned Bantams thought they had nailed a three-year deal with Williams after meeting up with him last month.

They had been prepared to meet his wage demands, which would have been a huge improvement on what he had been earning at Swindon. Temporary accommodation had also been arranged to help him relocate his family in Yorkshire.

Williams had recently spoken to club officials and told them of his excitement ahead of joining City’s promotion fight.

So last night’s call caught them completely on the hop. The follow-up message this morning to underline the player’s change of heart arrived just two hours before he was due to undergo a medical.

Gillingham have been spending big since they were taken over by American Brad Galinson last Christmas.

The Florida-based property tycoon bankrolled a lucrative January transfer window which included the expensive capture of Tom Nichols and Oli Hawkins as the Gills pulled away from relegation trouble.