The Scotland international was on Nottingham Forest's radar, but the East Midlands club saw their offers spurned by the Glasgow giants, and the left-back was subsequently part of the team that beat Brechin City 2-1 today.
Wallace told Rangers' official website: "I've always envisaged myself being here for many years to come and as I keep stressing, the hunger to do that just grows.
"I'm delighted I'm still here and playing a part. I've always stayed focused on doing that despite the speculation.
"You've got to be professional in every situation and that's the window shut now. I'm delighted I'm a Rangers player and hopefully I'll remain one for as long as possible."
Wallace assisted Jon Daly for what proved to be the winning goal in today's Scottish League One game.