Chelsea have sent young full-back Wallace back to Brazil on an 18-month loan with Gremio.
The 21-year-old returns to his homeland until June 2017 after an unsuccessful stint in Italy in the first half of this season with Carpi.
He made only one start in Serie A having previously made 22 appearances in the Eredivisie for Vitesse in 2014-15.
Wallace joined Chelsea on a five-year contract from Fluminense in summer 2013.