The 18-year-old, a technically gifted midfielder who first joined the Academy aged five, has been a regular for David Unsworth's Under-23s so far this season and has now set his sights on forcing his way into Ronald Koeman's first-team plans.
Walsh told evertontv: “I am made up. Since I signed my first contract it's what I've wanted. It's the club I want to be at and the club I want to play for.
"With the new manager coming in and giving me the contract straight away it shows that he has got a bit of belief in me and I want to prove him right.
“I have a lot to thank Unsy for as well, I have worked with him a lot and he has made me work very hard and that is what you need to get new contracts. A lot of other staff through the Academy have helped me along the way and I am thankful to them all."