The Blues are reportedly dropping their interest in goalkeeper Kasper Schmeichel.
Walsh completed a move to Everton on Thursday to take up the newly created Director of Football position created at Goodison Park.
It is hoped that he will bridge the gap between manager Ronald Koeman and the board, especially when it comes to transfer dealings.
New manager Ronald Koeman during the press conference
They are expected to be busy this summer, especially with the backing of shareholder Farhad Moshiri’s millions.
However, according to the Express, they will not be targeting any players from Leicester City after the champions pushed to ensure they would not be susceptible to raids on their star men from the Toffees.
Leicester's Kasper Schmeichel
The decision from Walsh and Everton not to pursue Foxes stars means that a move for goalkeeper Kasper Schmeichel is likely to be shelved.
The Toffees are in need of a new number one goalkeeper and had been linked with a move for the Danish star in this transfer window.
They will now look at other targets though, with Newcastle United’s Tim Krul and Chelsea Asmir Begovic currently under consideration.
Chelsea's Asmir Begovic