Chelsea first started the process of bringing Wallace to London several years ago when Deco was allowed to join Fluminense, and it looks as if the business will officially be put to bed in January when it sounds as if Wallace will be joining Chelsea in London. Reports out of Brazil today suggest that instead of waiting until June*, Wallace will be arriving during the January transfer window, attempting to acclimate to his new home and teammates.
*Hat tip to trOOly for spotting this
Wallace does not have an EU passport yet, so he'd need to be granted a work permit before becoming eligible to play for Chelsea. That said, I don't think it will be all that difficult to acquire one, as Wallace is certainly one of the better young prospects in Brazil. A loan spell prior to his Chelsea debut seems likely though, as he's still a considerable way down the pecking order at Chelsea.
Nothing is official on this front yet, but it's starting to look like it will be in the very near future. Even if he's the only player that we end up getting out of the Deco deal, it's starting to look like a very good bit of business.