It was reported by the Daily Mail on Thursday that the in-form forward has decided to shelve talks regarding fresh terms until the summer.
He remains fully committed to the cause, though, with speculation surrounding his future shrugged off on Twitter.
Walsh believes the situation will be resolved, but has also warned QPR that will need to dig deep in order to get important paperwork signed.
He says Austin has every right to demand a lucrative extension after emerging as a key figure for the club in their battle to cement a Premier League standing.
Walsh told Sky Sports News HQ on Thursday: "You're looking at what the options are, aren't you? The problem QPR have, they've paid out some lumpy contracts in the past, and some of them are still hanging about.
“He's a striker who is scoring goals, and they are normally the best-paid player. He'll want top dollar. I'm sure it'll get done, he has a manager who likes him."
Austin has found the target 13 times in the league this season, placing him just two behind Chelsea’s Diego Costa in the race for the Golden Boot.
He remains the top scoring Englishman in the top-flight and is being tipped to earn an international call-up in the not too distant future.
His focus has, however, remained locked on QPR’s bid to beat the drop, with his efforts crucial to that cause.