The 50-year-old former Everton manager has had talks with the Leicester chairman, Martin George, and is due to meet him again tomorrow before watching Leicester play Norwich in his role as a television commentator. An announcement is due to be made after the game.
After a 24-year goalkeeping career, Walker moved into management with Colchester in 1983, spending three years as assistant before taking over at Layer Road in 1986. When he was sacked the following year, Walker became reserve coach at Norwich, where he was promoted to manager in 1992. He resigned in January 1994 to sign a three-and-a-half year contract with Everton, but he failed to end the Merseyside club's slump and was dismissed in November 1994.
Howard Kendall's first signing for Sheffield United could be Manchester City's Michel Vonk. The Dutch defender, who is available at pounds 300,000, is currently on loan at Oldham.
Leeds have agreed an initial fee of pounds 50,000 for the 21-year-old goalkeeper Paul Evans from Witts University, South Africa, in a deal which could cost the Elland Road club up to pounds 750,000, depending on first-team appearances.
Gillingham have reinforced their Third Division promotion push by paying pounds 100,000 for Cambridge's 33-year-old striker Steve Butler, who could make his debut at Bury today.
A cardiologists' convention has cost Ibrox the chance of hosting the European Cup-Winners' Cup final in May. Uefa yesterday awarded the final to the King Baudouin Stadium in Brussels, with Rangers blaming a lack of hotel beds available in Glasgow for the 8 May showpiece. The European Cup final will be played at Rome's Olympic Stadium on 22 May.
n Diego Maradona has threaten to quit Boca Juniors in a dispute over who should be the coach. Maradona, who wants the job himself, said that to be in charge would be a dream appointment. "It's like having Cindy Crawford and Claudia Schiffer naked in front of you," he said.
n Eddie Clamp, the former England wing-half who won two League championships and an FA Cup final with Wolves, has died aged 61.