Stoke's summer recruitment of Xherdan Shaqiri and Ibrahim Afellay, and the return to fitness of Bojan, has reduced his importance to manager Mark Hughes in attack.
And, with his contract due to expire next summer, Walters had hoped to move elsewhere in the Premier League.
The forward had even been granted leave from international duty by Republic of Ireland manager Martin O'Neill in an attempt to resolve his future, but after reportedly handing in a transfer request amid interest from Norwich he will remain at the Britannia Stadium for the foreseeable future.
"Helicopter away for the year
Sorry LVG it's not happening," Walters tweeted, to which his team-mate Charlie Adam added: "Great news @JonWalters19 staying".
Hughes had previously said of Walters' future: "Jonathan wants a little bit more in terms of the lengths of a new contract, but we are hopeful we can come to an agreement.
"But if we don't, then we will probably keep him and let his contract run down."
Source : PA
Source: PA