Walker, who turned 23 on Anzac Day, injured his knee after landing awkwardly in a marking contest in the first quarter of the Crows' clash with Carlton at the MCG.
He will have a 'traditional' knee reconstruction later this week or early next week.
Watch: Footy Feed
The star forward was quickly substituted out of the game and had scans on his knee after arriving back in Adelaide. On Monday, Walker visited a specialist who delivered the bad news.
General manager of football administration Phil Harper said: "The whole club feels devastated for Taylor, but we know how professional he has become in his treatment of injuries.
"He will be given the best possible treatment and rehabilitation program to help him get his knee prepared for the rigours of AFL football."
Walker has kicked 163 goals in 69 games since making his AFL debut against Collingwood in round one, 2009.
He enjoyed a breakout season in 2012, kicking 63 goals in 19 matches to top Adelaide's goalkicking and finish seventh in the Coleman Medal.
Walker kicked four or more goals on 11 occasions and won All Australian honours, and he kicked 10 goals in five games this season.