The Brazilian forward has decided to return to his homeland after failing to break into the Portuguese club's first team due to personal and fitness problems
Cruzeiro announced that they have signed striker Walter from Porto on a loan deal that will run until the end of 2012.
The Brazilian club have also retained the option to purchase 50 per cent of the player's economic rights at the end of the spell, as the remaining half belongs to a group of investors.
Walter signed for Porto in the summer of 2010, one year after impressing for Brazil's Under-20 squad at the South American Youth Championship.
Walter's long absence from first-team duties because of the premature birth of his daughter and weight issues have prevented him from earning a place in the squad.