Walsh, seen by many City supporters as one of the worst players to wear a City shirt after a nightmare performance in a 5-2 televised defeat at Watford, has left the Walkers Stadium along with Craig Shakespeare to become assistants to Pearson who has signed a three year deal.
Paulo Sousa is favourite amongst some bookies as the man to replace Pearson at Leicester but Port Vale have said they are confident of keeping Micky Adams, who is being reported as being in the running due to him living in a Leicestershire town.
The former Coventry City defender and manager took Leicester to promotion in 2003 but was dismissed when they were back in the second tier a year and a bit later.
Port Vale's Chairman Bill Bratt is being quoted as saying: "It wouldn't be easy to prise him away from here and I am looking forward to next season with him in charge. As far as I am concerned, the reports about Leicester are just paper talk."