He was also touted for a move to Premier League new boys Nottingham Forest and Turkish outfit Besiktas.
Sources in the midlands suggest Wallace is due to have a medical today and will link up with Gosport’s John Swift, who has been brought in by Steve Bruce this summer after his Reading exit.
Wallace leaves The Den following a six-year stint with with the South Londoners, returning 90 goals and assists from 253 appearances.
The former Pompey player of the season retains strong ties with the professional club he emerged at, after scoring 30 goals in 121 appearances before moving to Wolves in 2015.
Wallace was present to watch his old side take on Oxford United at Fratton Park last term.