Chelsea could be about to sell Wallace to Benfica, if reports in Portugal are to be believed.
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According to A Bola, he would be a replacement for Maxi Pereira, who is expected to let his contract run out.
Wallace signed for Chelsea from Fluminense in 2013 in a deal believed to be worth about £5 million, but struggled to make an impact at the Stamford Bridge club.
He was almost immediately loaned to Inter Milan, but only played three games for them.
He spent last season on loan at Vitesse Arnhem in the Netherlands, and performed much better, playing 19 games.
In mid April he was arrested on suspicion of sexual offences, but was released later without any charges being brought against him.
Internationally, he has won the 2011 South American Under-17 Championship with Brazil, and also featured in their fourth-placed finish at the Under-17 World Cup in Mexico later that year.