Sources told ESPN.com that all 30 NBA teams were notified at 5 p.m. Saturday that the 76ers have released Wallace without ever using him in a game.
Wallace will become an unrestricted free agent Tuesday if he clears waivers.
Wallace was acquired by Philadelphia in late July from the Golden State Warriors in exchange for forward Jason Thompson. The Warriors had Wallace on their books for only a few days, having acquired his cap-friendly contract in a swap that sent fellow former All-Star David Lee from Golden State to the Boston Celtics.
Wallace, 33, broke into the NBA with the Sacramento Kings in the 2001-02 season and has since played for Charlotte, Portland and Brooklyn between his stops in Sacramento and Boston. Wallace made one All-Star appearance during his stint with the Bobcats and was acquired by the Nets in a controversial 2012 trade for a future first-round draft pick that wound up landing future All-Star point guard Damian Lillard with the Blazers.