In the controversial images, the mechanical technician is shown posing next to the topless dancer while holding a bag of what the paper describes as 'white powder' in his mouth.
An anonymous source allegedly told the newspaper that the pictures were taken at a mate's house.
The Daily Mail also alleges Williams has a somewhat tumultuous past, claiming court documents reveal he was charged with two counts of assault, and unlawful assault and affray.
The publication claims Williams pleaded guilty to one count of assault in company and received a 12-month good behaviour bond and a $200 fine. No conviction was recorded and the other charges were dropped, the Daily Mail reports.
The reality star, who is a father-of-two, is believed to have split with his television wife Sarah Roza.
Telv has yet to respond to the Daily Mail's allegations, or to clarify what is actually happening in the pictures.