Williams was 81.
Williams was born in New York City on August 21, 1939, according to the statement.
He began his career in a production of "Dark of the Moon," and appeared on Broadway in "The Great Outdoors."
His performance in "Slow Dance on the Killing Ground" won him a Theatre World Award and a Tony nomination, the statement said.
Along with his theatre performances, Williams also starred in several shows and movies, including: "52 Pick-Up," "Against the Wall," "Reindeer Games," "Purple Rain," "The General's Daughter," "American Gangster," "Half Baked" and "Lee Daniels' The Butler."
Williams is survived by his sister Sondra Pugh, daughter Jamey Phillips, niece Suyin Shaw, grandnephews Elliot Shaw and Ese Shaw and grandniece Azaria Verdin, the statement said.
Correction: A previous version of this article misstated the age of Clarence Williams III. He was 81.