The midfielder is now in his second temporary spell at The Den following a similar move in the second-half of 2015/16.
Wallace started his professional career at Portsmouth, where he became a fans favourite, scoring 27 goals in 100 League appearances.
After moving to Molineux in the summer of 2015, the 22-year-old only made a handful of starts for Wolves, prompting Lions manager Neil Harris to secure his services on loan in January 2016.
Wallace enjoyed a fruitful spell in SE16, scoring once and contributing with several assists in 12 League games, before he was recalled by then Wolves boss Kenny Jackett.
With the winger finding games hard to come by in 2016/17, he has once more moved south to finish the campaign in SE16.