Wallace has featured rarely this season and the news comes as no surprise, but in his first three years at Burnley he was very much a regular in the side. That was particularly so during the time Eddie Howe was manager. No outfield player was selected on more occasions and he played in all but five of the games that Howe was in charge.
Back in 2010 he'd signed a three year deal, and he signed for a further two years on reduced terms for the 2013/14 and 2014/15 seasons.
He started the first of those seasons in the team. He played the first three games but was then out of the reckoning until February 2014 because of a knee problem that required surgery. He struggled to regain his place after that and has started only three league games since.
He's certainly had his moments coming off the bench. He set up the equaliser at Bournemouth in February last year and in the following month played a major part as we turned round a 1-0 deficit at Blackburn to win 2-1. This season he came on to score the late equaliser at Leicester in a 2-2 draw.
Wallace has made over 160 appearances for the Clarets, scoring 14 goals, four of which came in successive games in the Autumn of 2011.
He said today: "It's a sad day for me to be leaving Burnley. I have thoroughly enjoyed five terrific years at the club and made many friends. I would like to thank the manager, his staff, the players and the supporters for all their backing and I wish the club every success in the future."
This follows on from yesterday's news that Steven Reid is retiring whilst the club have confirmed today that Michael Duff is in talks over a new contract. That leaves just Danny Ings out of contract with it widely believed he will be leaving during the summer.