Chelsea are poised to sign teenage full-back Wallace for £4.4m from Fluminense.
The Blues already own a 40% stake in the Brazilian and were granted first option on his services after allowing Deco to join Fluminense in 2010.
It is reported that Wallace will not join up with the Premier League outfit until next summer, with the youngster set to be loaned back to Fluminese once an agreement is completed.
Wallace's agent has admitted in the past that a move to Europe is something he and his client have considered, but Fred Moraes has refused to comment on the latest Chelsea reports.
He told Lancenet: "I can't talk about this subject."