Just six months into his loan spell from Chelsea, Wallace has left Carpi to join Gremio.
The 21-year-old right-back arrived in July, but failed to make any impact on Serie A.
He made only seven appearances between Serie A and the Coppa Italia for a grand total of 204 minutes of football.
Now Gremio have officially announced that Wallace has joined the Brazilian club instead.
It is a loan deal until June 2017 and his third temporary spell after Inter and Vitesse.
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