Fussball Transfers reports Everton have been watching the 28 year-old this season, convinced his physical style can suit the Premier League.
Bakalorz made his name with Borussia Dortmund under Liverpool boss Jurgen Klopp before moving onto SC Paderborn. Now in his second season with Hannover, Bakalorz's deal expires at the end of this season.
Everton are keen to do business for the January market - which would suit Hannover.
However, Walsh will leave the final decision to the new manager following the sacking of Ronald Koeman.