Former Australia coach, Walsh's name has emerged as the front-runner for Michael Nobbs' successor from the six applications received by the Hockey India.
According to sources, presently negotiations are on between Walsh and SAI on the double Olympian's salary and an official announcement on this front is expected in a week's time.
It has been learnt that Walsh is demanding a heftier pay cheque, somewhere in the range of Australian dollar 14,000-15,000 per month, for accepting the high-profile job.
SAI pays the salaries of all foreign coaches and it is bargaining hard with the 60-year-old, who also coached the Netherlands men's team. SAI will forward the name of the selected candidate to the Sports Ministry for its final approval.
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Nobbs resigned from his position on health grounds (acute hypertension) in July this year and the post has been lying vacant since then.
Hockey India shortlisted four foreign candidates out of the six applications received. Walsh was one of the three Australians in fray apart from two Dutchmen.
It has been also learnt that the new coach could well be given a contract till the Rio Olympics.