Williams said former New Zealand hooker and ex-Ireland coach Gatland - now back home as Waikato coach - was the firm hand needed after former Welsh coaches had been forced out by player power.
'This time we need to go abroad and my choice would be Warren Gatland,' Williams told the stuff.co.nz website.
'He's got a great track record, especially at Wasps where he enjoyed huge success, and that is what we need.
"We also definitely need a strong disciplinarian because there's no doubt in my mind the players have been trying to rule the show.
"'We've had enough of player power. You can't have players demanding what they have been. We need to have a clear-out and to build around a group of younger players for four years' time.
'Our regional coaches are not ready for the job. That is one of the problems with the Welsh set-up.'