Wallace first worked out for the Knicks last Saturday and had been contemplating a return in recent days.
The 15-year veteran retired after the 2009-10 season, which he spent with the Boston Celtics.
Wallace has not yet signed a deal, according to a team source. But the Knicks expect him at training camp, barring something unforeseen between now and the first day of camp Tuesday.
Wallace took a physical with the team late last week and has been working out at the Knicks' facility for most of the last week.
The New York Post reported on Saturday that Wallace would join the team on Monday.
For the full news story, click here.
You can follow Ian Begley on Twitter.