The Welshman watched the 18-year-old net his fourth goal of the season during Pompey’s 2-0 home win over Coventry on Saturday, and is said to be impressed by what he saw.
The cash-strapped South Coast outfit are resigned to losing the youngster, with spiralling debts and their Football League status far from guaranteed heading into next season.
Wallace was fast-tracked into Portsmouth’s first-team this season, as the club set about building their squad following a number of departures.
He has been a success so far, producing a number of impressive displays which have alerted bigger clubs.
Stoke are thought to be the favourites for his signature, but both Derby and Brighton are also keen.
The wide-man is likely to move on this summer, with the Fratton Park club almost certain to suffer relegation to the fourth tier.
Wallace is a product of Pompey’s academy set-up, and was recalled form a loan spell at Whitehawk earlier this year to be a part of the club’s first-team.
He made his league debut against Swindon Town, and netted his first goal for the club in a 3-1 defeat to Hartlepool.
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