According to the university, Wallace will leave the program after completing his academic coursework for spring quarter. Final exams are scheduled to take place June 2-5.
The 6-5 Wallace, who came to Ohio State prior to last season after a career at Hargrave Military Academy, played 15 games last season and averaged 1.8 points and 1.3 rebounds per game.
OSU head coach Thad Matta said through a release, "Eric is a tremendous person and student-athlete. We are thankful for his contributions to our team this past year. We wish him nothing but the best in his future endeavors."
Wallace, native of Winston-Salem, N.C., was rated the 29th-best small forward in the country by Scout.com and a three-star prospect in the class of 2007.