The athletic department made the announcement Tuesday.
The former Missouri player sat out the 2017-18 season because of college basketball's transfer rule, then played just 10 games last season because of an ankle injury that required surgery.
He has started 35 games of the 42 he has appeared in with the Cardinals and averages 11.7 points and 4.5 rebounds.
Walton played high school basketball at Brownsburg, a western suburb of Indianapolis.
The decision comes one day after coach James Whitford announced the Cardinals had signed 6-foot-2 guard Teemu Suokas of Finland. He spent the past three seasons with HBA-Marsky of the Helsinki Basketball Academy, leading it to a 21-0 record last season while averaging 12.1 points, 3.8 assists and 1.1 steals and shooting 44.8% on 3-pointers.
He's the first European player to ever sign a national letter of intent with Ball State.