The 49ers intend to release Wallace and did not plan to play him in Thursday night's 41-6 preseason victory over the San Diego Chargers, Matt Barrows of The Sacramento Bee reported.
The news comes as no surprise. The 49ers announced Colt McCoy as the team's backup quarterback after McCoy signed a reduced contract to stay on the roster. In the end, Wallace was brought in as leverage and insurance. Look for the 49ers to keep seventh-round draft pick B.J. Daniels as their No. 3 quarterback.
"It's something that was his decision," Harbaugh said, according to the San Francisco Chronicle. "He felt strongly about it. I don't talk people out of that. I've never seen it done on game day, but I wish him well."