The Foxes have made a stunning start to the campaign, and they currently sit at the top of the Premier League table.
Leicester have lost just one of their first 13 league matches, and Walsh claims that if they are in a similar position at the turn of the year – then the squad could make it into the Europa League.
"I'd be happy with top eight, but the players in this form are capable of beating some of these top teams,” Walsh said.
“But let's have a look towards Christmas. We have got a tough month so let's have a look at it then.
"If we are up there then, then we might be looking at top six and the Europa League."
Leicester’s latest 3-0 win over Newcastle United further confirmed just how dangerous a side they have become under Claudio Ranieri’s guidance.
The Italian boss has worked on their attacking threat, and Leicester are now the top scorers in the Premier League.
Their brilliant start has shown no signs of slowing down, and it seems that they are set to defy expectations this season.
Leicester’s next match comes against Manchester United at the weekend, and if they are able to win that contest it would increase their momentum even further.