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Walker's manager Chris Orr hit the phones after receiving the bad news from Roosters boss Bernie Gurr, immediately contacting Newcastle, Brisbane and Manly.
Orr also indicated he would talk with Australia's three rugby union Super 12 franchises.
It's understood the Knights were scared away by Walker's asking price, believed to be around $150,000 per season, but the Broncos will hold further talks with Orr on Thursday.
"We're going to the market," Orr said on Wednesday.
"I'll be ringing every club and seeing if they want a player of Chris' ability in their side.
"We're also going to sound out the (NSW) Waratahs and (Queensland) Reds, and maybe the (ACT) Brumbies.
"Right now we're up in the air.
"It's unfortunate because Chris really wanted to stay at the Roosters and was prepared to take a (pay) cut to do it."
Broncos chief executive Bruno Cullen had a brief talk with Orr on Wednesday afternoon before discussing Walker's situation with coach Wayne Bennett.
Walker has admitted he probably made a mistake in leaving Brisbane at the end of last season to take up a lucrative contract with South Sydney.
It's history now that the former Queensland back ended up walking out on the Rabbitohs before taking up an offer from the Roosters for the remainder of this season.
"I have had a discussion with Wayne and he's going to consider the options and then we will talk to Chris Orr tomorrow," Cullen said.
The Broncos could be one of Walker's few options in rugby league, with most clubs having spent their money for next season.
Manly chief executive Ian Thomson indicated as late as two weeks ago that the Sea Eagles could not afford Walker.
The Reds and Waratahs have also indicated they would not make a play for Walker, while ACT Rugby Union chief executive Rob Clarke said he was happy with the Brumbies squad, but it would be "churlish" not to listen to what Walker had to say.
The 23-year-old Walker, a State of Origin player last season, is the third member of the Roosters squad to pay the price for the club's success.
Andrew Lomu (Cronulla) and Todd Payten (Wests) have been released for next season even though they were still under contract.
The Roosters will continue to pay part of their contracts, however, Walker's deal expires at the end of this season.
"It's a difficult situation," Roosters chief executive Bernie Gurr said.
Orr defended Walker's decision to delay making a decision on his future until he heard back from the Roosters.
"We were trying to do the right thing," he said.