Chelsea defender Wallace has flopped at Gremio.

The Daily Star says Wallace has been released by Gremio six months before the end of his loan deal.

Wallace, 22, joined Chelsea from Fluminense in 2012 but he is yet to make a first-team appearance for the Blues due to loan spells with Inter Milan, Vitesse, Carpi and most recently Brazilian outfit Gremio.

Gremio president Romildo Bolzan Junior told GloboEsporte: "Wallace has a contract until the middle of the year, but we have authorised the player to look for other teams."

Chelsea currently have an incredible 36 players out on loan.