CHELSEA full-back Wallace has had his loan spell with Gremio terminated, the Brazilian club have confirmed.
Chelsea signed Wallace from Fluminense in 2013 and immediately loaned him back to the Brazilian club for the remainder of that season.
The 22-year-old has since had a number of other loan spells, spending time at Inter Milan, Vitesse, Carpi and Gremio.
However, his most recent spell in his homeland has not gone well and Gremio have opted to cut short their agreement with the Blues.
“Wallace has a contract until the middle of the year, but we have authorised the player to look for other teams,” Gremio president Romildo Bolzan Junior told GloboEsporte.
“Negueba is also returning from his loan to Coritiba.
“Henrique has also been released.
“We had an expectation that was not fulfilled, so we understand that he needs to play more to continue his career.”
Wallace has made just six league appearances for Gremio this season, operating as right-back and right-sided midfielder.
The former Fluminense star is yet to make a single appearance for Chelsea in any competition and is under contract at Stamford Bridge until June 2017.
Jack Wilshere: What I really think of Chelsea star Cesc Fabregas
JACK WILSHERE believes Cesc Fabregas has been excellent for Chelsea this season – when he’s been given some game-time.
Fabregas had made just one Premier League start in their first 13 games of the campaign but has enjoyed a run in the side in their last five outings.
Chelsea are currently on a 12-game winning run and Fabregas has added a new dimension to Antonio Conte’s side recently.
Arsenal’s Wilshere played alongside the Spaniard in north London for several years and went head-to-head against his former team-mate in Chelsea’s 3-0 win over Bournemouth on Boxing Day.
The 24-year-old England international said: “I played against him with Arsenal and he was there with me in the early stages of my career.
“When I first broke in, he was someone I looked up to. He’s always been good to me, and I’ve kept in contact with him.
“He’s been a bit unlucky this season because he hasn’t had much game time. For me, when he’s played he’s been excellent.”
Chelsea legends John Terry and Frank Lampard could end up at Swansea if this happens
HARRY REDKNAPP wants to sign John Terry and Frank Lampard if he gets the Swansea job, according to reports.
Swansea are looking for a new manager after axing Bob Bradley after just 11 games in charge yesterday afternoon.
Manchester United legend Ryan Giggs and England flop Roy Hodgson are both in the running to succeed Bradley at the Liberty Stadium.
Former Crystal Palace and Birmingham bosses Alan Pardew and Gary Rowett are also possible candidates.
However, Redknapp has confirmed he would be interested if he were to be approached.
Daily Telegraph claim that – should Redknapp take the job – he would make signing Chelsea legends Terry and Lampard his number one priority.
Terry is out of contract at the end of the season meaning he is free to negotiate with clubs as early as next month.
The 36-year-old has spent his entire career at Stamford Bridge but could depart if Antonio Conte refuses to offer him a new deal.
Redknapp has been a fan of Terry throughout his career and the duo could combine to ensure Swansea remain in the Premier League.
Lampard would also be on Redknapp’s radar having left New York City FC at the end of the MLS season.