Specialist search teams recovered a body believed to be that of Mr Walsh, who went missing after leaving a bar.
The body was discovered in the river near to the town centre today and was recovered at 2.30pm on Wednesday.
The find brings an end to the days-long searches that police and specialist teams have undertaken since the married father of two was reported missing on Sunday.
Laura Maltby, spokeswoman for West Mercia Police, said formal identification would now take place.
She said: “The man’s death is not being treated as suspicious and a file is being prepared for the coroner.
“Formal identification has not yet taken place but he is believed to be missing local man Shane Walsh.”
West Mercia Search & Rescue said: "Specialist Police Dive teams have recovered the body of a man from the River Severn in Shrewsbury. Whilst formal identification has not taken place, it is believed to be Shane Walsh, who we were searching for this week.
"Our thoughts are with Shane's family and friends."
Mr Walsh's next of kin have been informed and his family have asked that their privacy be respected at this time.
River searches have been taking place since Monday after married Mr Walsh went missing after a night out in the town.
Mr Walsh, who lived in the Harlescott area of Shrewsbury, had been to a family party in Church Stretton and after returning to Shrewsbury visited a number of pubs and clubs.
He had been due to stay at his parents' house on Saturday but did not arrive.
Mr Walsh was last seen by a friend in the town at 3am on Sunday after visiting the Yorkshire House pub, Bonds Nightclub and Fever & Boutique in Hills Lane.
The last time anyone heard from him was around 3.50am on Sunday morning when he sent two texts to the friend.
Teams from neighbouring forces were called by West Mercia Police to lend their help with the investigation which was focused around the Frankwell area of the town.
A small garden close to the Quantum Leap sculpture on Smithfield Road was taped off from Monday afternoon and police officers were posted and standing guard.
Earlier this week a volunteer search and rescue team arrived at the scene.
On Monday teams were seen beating the overhanging willow trees and reed beds which line the river along both sides of Victoria Quay.
A police car containing dogs was also on scene and inflatable boats and kayaks were deployed and were involved in searches along the stretch of the river upstream from the Welsh Bridge.
Mr Walsh’s disappearance was described as “totally out of character” by his friends and family and police appealed to members of the public for their help.
He married his wife Kirsty in 2016. They had two small children.
Mr Walsh’s next of kin have been informed of the discovery and his family have asked that their privacy be respected at this time.
A file will now be prepared for the coroner.