Bryan Hamilton's signing of Steve Walsh on 18th September 2000 made it the third occasion that the two had worked together. Steve made the grade at Wigan under Bryan's leadership. After 126 appearances for the Lancashire side, Hamilton took him to Filbert Street for £100,000 in 1986. He quickly became a popular figure in the Leicester defence although had been played as a traditional centre forward. He made 368 league appearances, scoring 53 goals and leading Leicester to 2 Worthingtons Cup victories before his transfer to Norwich, partially sped up by the transfer of his friend Tony Cottee along the A47 between the 2 cities the previous week. Norwich beat off competition from Wolves for his signature.

Injuries limited Walsh's appearances at Carrow Road and on January 24th, his contract was cancelled by mutual consent. A possible destination could be Peterborough as the Peterborough Evening Telegraph reported a few days earlier that Barry Fry was hoping to bring Walsh to London Road, possibly on loan. Fry's efforts might be scuppered by Walsh's former Leicester and Norwich colleague Tony Cottee who is said to be keen to bring Steve to Barnet. Leyton Orient and Tamworth both expressed an interest in signing Steve with newspapers reporting incorrectly that the latter had signed him on a non-contract basis at the beginning of March 2001.

In July 2001, Steve was appointed Director of Football of newly formed Loughborough FC. His role will be to encourage with the managers and coaches, work with the youngsters and raise the profile of the side. (Non League Paper August 5th 2001). Steve was also linked with a move to Kettering at the end of August 2001 with the Northamptonshire side said to have made an initial approach. Rumour also has it that he turned out for Barrow.

Walsh finally confirmed media rumours by signing for Tamworth in November 2001. When manager Gary Mills quit the Lambs in May 2002 to join Gary McAllister's coaching staff at Coventry, Steve was linked immediately to become Tamworth's new manager. However Steve then resurfaced at Coventry playing for the Sky Blues in a pre-season friendly win over Port Vale. He impressed the Coventry management over a three week trial and signed for the Highfield Road outfit on a non-contract basis. This was upgraded to a one year contract and Steve made his Coventry debut as a second half substitute in their 1-0 defeat of Crystal Palace on 24th August 2002. His subsequent performances were not up to Division One standard and by early September, Steve had returned to Tamworth. Although primarily a coach, his contribution helped Tamworth win the Dr Martens league and reached the final of the FA Trophy.

At the end of June 2003, Steve was sacked by Tamworth for applying for the vacant Grantham Town position without informing Tamworth. If Walsh had been honest with his intentions, Tamworth boss Darron Gee would have accepted it and even appointed him to assistant manager to replace the departing Dave Norton, according to the Non League Paper (June 29th 2003). Gee said "Steve had been coach here for two seasons and I told him I would promote him to assistant manager in place of Dave, but he applied for the Grantham job without telling us. When Grantham revealed that Steve was among those interviewed, I gave him the opportunity to confirm it but he declined to do so. The board and I were very disappointed and so Steve..has not been retained...I needed a No. 2 who would be completely open with me."

Two weeks later, Walsh was linked with the vacancy at Gresley Rovers created when Jon Newsome resigned. In Nivember 2003, he was named as a potential Assistant Manager to Stan Collymore if Stan took over the managerial role at Southend.

In December 2005, the Football Rumours website reported that David Pleat might return to Leicester as manager, taking Carlton Palmer and Walsh with him as assistants.

Walsh has since coached junior soccer schools and ran a golf course in Spain. Still a cult favourite at the club, he currently writes a weekly column for the Leicester Mercury. On 25th October 2007, Walsh revealed that he wanted the vacant managerial position at Leicester City, following the departure of Gary Megson to Bolton but Ian Holloway was appointed manager instead