According to Williams, Disney signed off on the agreement.
However, as he then explained to Today, once the movie was released, things changed.
"Then all of a sudden, they release an advertisement - one part was the movie, the second part was where they used the movie to sell stuff. Not only did they use my voice, they took a character I did and overdubbed it to sell stuff. That was the one thing I said: 'I don't do that.' That was the one thing where they crossed the line."
As Williams told New York magazine that same year: "It wasn't as if we hadn't set it out. I don't want to sell stuff ... It's one thing I don't do ... The voice, that's me; I gave them myself. When it happened, I said: 'You know I don't do that.'"
A source at Disney initially countered the late comedian's version of events, branding it a case of sour grapes.
"He agreed to the deal, and then when the movie turned out to be a big hit, he didn't like the deal he had made."
But according to Artnet, the studio soon backtracked and sent him a million-dollar Picasso painting by way of apology.
The (very) expensive olive branch must have gone some way to smoothing things over, as Williams eventually returned to the studio for Aladdin 3, despite shunning the first sequel, later partnering with them again for 1996's Jack and Bicentennial Man in 1999.
When the actor tragically died, Disney offered a final emotional tribute to one of its brightest stars.