The winger’s contract is up at the end of the season and he will remain permanently with Bradford City, where he has spent the past four months on loan.
The 28-year-old came through the ranks at Tynecastle and has made 240 appearances in two spells, either side of an 18-month long move to Wigan. Walker also won the Scottish second tier twice with the club.
He joined the Bantams in January and, after scoring four goals in 19 appearances for the League Two side, will stay at Valley Parade.
Speaking to the club website, manager Robbie Neilson said: “I’ve worked with Jamie over a number of years and he’s always been a great professional during his time at Hearts.
“He’s made a big contribution to the club over two spells and we were all delighted for him when he broke the 50 mark for goals in maroon.”