Inter are expected to send 19-year-old Wallace back to Chelsea just six months into his year-long loan.
The Brazilian right-back only arrived in the middle of August and had been due to remain at San Siro until June 30.
However, he made only four appearances this season between Serie A and the Coppa Italia, playing a grand total of 133 minutes of football.
Wallace failed to make an impression on Coach Walter Mazzarri and Sky Sport Italia claim he’ll be sent back to Chelsea six months early.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's tipster competition  - £11,000 to be won monthly!