Last month, viewers saw Walker make his debut as Aden Jefferies' (Todd Lasance) brother Justin for what was intended to be a one-off guest stint.
Since then, Justin has proved a hit with viewers and some fans are calling for him to set up home in Summer Bay even though Aden is leaving later this year.
A show source told TV Week: "Matthew isn't a permanent cast member at this time, but the bosses are really impressed with his work.
"There's every chance [Justin] could become a recurring character."
Walker previously played student Heath Forbes on the short-lived soap Headland, which was originally commissioned as a Home and Away spinoff before later being reworked as a stand-alone show.