Under English law, people may devise their own way to settle a dispute in front of an agreed third party as long as both sides agree to the process.
Muslim Sharia courts and the Jewish Beth Din which already exist in the UK come into this category.
Dr Williams' comments are likely to fuel the debate over multiculturalism in the UK.
Last month, one of Dr William's colleagues, the Bishop of Rochester, said that non-Muslims may find it hard to live or work in some areas of the UK.
The Right Reverend Dr Michael Nazir-Ali said there was "hostility" in some areas and described the government's multicultural policies as divisive.
He said there had been a worldwide resurgence of Islamic extremism, leading to young people growing up alienated from the country they lived in.
He has since received death threats and has been placed under police protection.
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