Inter Milan are to turn their attention to bringing in new Chelsea arrival Wallace on loan after their move for Napoli's Juan Zuniga fell through.
The Nerazzurri are in the market for a wing-back who can fit into coach Walter Mazzarri's 3-5-2 system - and while Zuniga was their preferred choice, his decision to stick with Napoli has convinced Inter to look elsewhere.
Wallace, 19, has emerged as an ideal alternative and, given the strong bond between Blues coach Jose Mourinho and his former club, a mutually beneficial deal could be in the offing.
The former Fluminese player's lack of international appearances currently precludes him from receiving a work permit in England.
Sending him out on loan for a year to increase the likelihood of him gaining the necessary caps or match experience to appear in the Premier League is Chelsea's preferred solution.
"He should end up in Italy," Federico Moraes, Wallace's agent, told FcInterNews TV. "My assistants are in London right now, and there should be a meeting to discuss Wallace's future. If they [Inter] want him, then I think a deal can be done in an instant."