Walsh, who was an integral part of the England team that won the Euros last year, crumpled to the turf at Sydney Football Stadium without contact in the 38th minute and immediately called for medical assistance.
"Following a scan late on Saturday afternoon, we can confirm Keira Walsh has not suffered an ACL injury," England said in a statement on Saturday.
"Walsh has been ruled out of Tuesday's final Group D match against China in Adelaide and will remain at England's Terrigal base to continue her recovery.
"Her knee injury will continue to be assessed by England medical staff and no further update will be provided at this stage."
Reporting by Lori Ewing, writing by Aadi Nair Editing by Christian RadnedgeOur Standards: The Thomson Reuters Trust Principles.
Persons:
Keira Walsh, Carl Recine SYDNEY, Walsh, Lionesses, Lori Ewing, Aadi Nair, Christian Radnedge
Organizations:
Soccer Football, FIFA, Sydney Football Stadium, Denmark, England, Sydney Football, China, Haiti, Thomson
Locations:
New Zealand, England, Denmark, Sydney, Australia, Adelaide, China