Alexander Wurz signed a deal with WilliamsF1 to become the team's official test and reserve driver at the beginning of 2006. He drove the third car at all Grand Prix Fridays in 2006. It was announced on 3 August 2006 that Wurz would replace Mark Webber as a race driver at Williams for the 2007 season. This was Wurz's first full-time race drive since 2000, and his teammate was Nico Rosberg. At the Monaco GP on 27 May 2007, Wurz scored his first points for the Williams F1 team, finishing in 7th place after qualifying 11th. He came 3rd for the 3rd time in his F1 career at the Canadian Grand Prix on 10 June 2007, staying out of trouble from 19th on the grid in an action packed race. He actually damaged his rear wing early on in the race, but battled against it and finished on the podium. He nearly repeated this at the European Grand Prix, but just didn't make it past Mark Webber at the final chicane. That race turned of to be Wurz's last points finish and especially from now on, teammate Rosberg distanced him. The qualifying for the Japanese Grand Prix, where Rosberg started from 16th on the grid, although he lost 10 places due to an engine change in practice, and Wurz started even further back in 18th without being put further back on the grid. On 8 October 2007 Wurz announced his immediate retirement from Formula One, meaning that the 2007 Chinese Grand Prix was his final race.
Wurz is involved in many projects regarding road safety and driver education and training. In 2006, he and his father founded the company Test and Training International, a leader in the field of road safety and driver training. He also works closely with the FIA (Fédération Internationale de l'Automobile), since 2011 as an operating partner of the FIA Institute Young Driver Excellence Academy.