The pair go head-to-head in the opening match at Alexandra Palace on Sunday at 1pm.
Selby and Williams met in the first round this time last year with Selby edging a 6-5 victory courtesy of an 89 break in the deciding frame.
Williams, however, is full of confidence heading into 2018 after clinching his first ranking title since 2011.
The Welshman won the Northern Ireland Open in November beating Yan Bingtao 9-8 in a gripping final.
And Selby is wary of Williams’ form ahead of their clash on the baize.
WHEN IS THE MASTERS SNOOKER? LIVE STREAM, DRAW, SCHEDULE, ODDS AND FULL INFO
“Mark was one of the players I wanted to avoid in the draw because he has been playing well,” Selby said.
“We had a great match in the first round last year and I’m sure it will be the same this time.
“Alexandra Palace is one of the best venues on the circuit and all the players strive to play in the big tournaments in front of big crowds.”
Selby is on the hunt for his fourth Masters title after winning this event in 2008, 2010 and 2013.
But despite holding the world number one spot, the Jester from Leicester insists Ronnie O’Sullivan is still the favourite.
Selby added: “Ronnie is always the man to beat.
“If he turns up and wants to play snooker then more times than not he performs to a really high level and he’s very difficult to beat.
“It’s no surprise the way he is playing at the moment.”