Wallace's deal is worth up to $4 million, a source told ESPN's Adam Schefter.
Wallace, 31, was the Ravens' most reliable wide receiver last season despite a decline in his numbers. He caught 52 passes for 748 yards receiving, which easily led the team.
The receiver is already building a rapport with star quarterback Carson Wentz.
Welcome to Philly my guy! Let's go!! 💣💣💣 @Wallace17_daKid
— Carson Wentz (@cj_wentz) March 22, 2018
🔥🔥🔥🔥🔥🔥🔥 let's get it! https://t.co/66Kq0KuTpc
— Mike Wallace (@Wallace17_daKid) March 23, 2018
Still confident in his ability and speed, Wallace publicly campaigned to get the ball more during a season in which he finished under 1,000 yards receiving for the fifth time in six seasons.
When called upon, Wallace was able to stretch the field, totaling eight plays of 50 yards or more in his two seasons in Baltimore, which topped the NFL.
Wallace made some spectacular catches with Baltimore, but he also dropped a handful, including a couple in the season-ending loss to the Cincinnati Bengals that knocked out the Ravens from a playoff spot.
A third-round pick by the Pittsburgh Steelers in 2009, Wallace has played for the Miami Dolphins, Minnesota Vikings and Ravens over the past five seasons. He has 538 receptions for 8,072 yards and 57 touchdown catches in seven seasons and was a Pro Bowl selection with the Steelers in 2011.
ESPN's Jamison Hensley contributed to this report.