The young full-back joined Chelsea back in 2013 but has failed to impress so far and has spent most of his time on loan in Italy.
Wallace is yet to make a competitive first team appearance for the Premier League champions.
The 21-year-old full-back is highly talented and is regarded as one of Chelsea’s brightest talents.
Due to lack of match action, the Blues are prepared to cut short his loan spell with Carpi and send him back home to Brazil.
Wallace has had just six league outings for the Italian club, although only one of those was a start.