City are on the lookout for a new gloveman and have set their sights on bringing in Slovenian Emil Velic, so Walters’ chances of playing next season at the club are slim.
KickOff.com understands that the former Maritzburg United keeper could be headed to Free State Stars next season after Ea Lla Koto made enquiries about his availability.
Thela Ngobeni could return to his parent Mamelodi Sundowns next season, so Stars are making plans to have an experienced shot-stopper in their squad.
City chairman John Comitis has confirmed that Walters is likely leaving the club next month.
“Walters' contract is expiring in June and I don't think we will renew it,” Commits tells KickOff.com.
Walters, who was the first-choice keeper at City in the 2016/17 campaign, struggled for regular game-time during the past season.
Sage Stephens was the man usually trusted to play in between the sticks by coach Benni McCarthy.
Walters played 11 times in all competitions, while Stephens featured on 27 occasions.
The Citizens, meanwhile, have already parted ways with defenders Vincent Kobola and Tshepo Gumede.