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Smith and his family have relocated to the Gold Coast and the 37-year-old was spotted training in public for the first time last week.
Walters said the Broncos are unsure if Smith has the motivation to play in 2021 but are keen to lure the NRL great to the club if he decides to extend his career.
“A player of Cam’s quality doesn’t come around very often,” Walters told The Daily Telegraph’s Peter Badel.
“We’re not really sure if we can get him. It’s a bit of a mystery for everyone.
“We just don’t know what will happen … but we’ll stay in the hunt.”
The Broncos have two spots in their squad and $600,000 in their salary cap available.
Smith said at a function last week that he has not decided on his playing future but feels physically good to play on.
“It’s a strange one. I feel physically really good. I still enjoy footy. I enjoy training and enjoy being part of a team, but I’ve got a big decision to make,” Smith said.