Wallace will spend next season in the Netherlands where he will be able to gain more first-team experience.
The attacking right-back, who is a Brazilian U20 international, joined Jose Mourinho's side from Fluminense in January 2013.
However, he was immediately loaned back to his former club before playing his first game in a Chelsea shirt while on last summer’s tour of Asia.
The 20-year-old then spent last season on loan with Inter Milan.
Vitesse, who finished sixth in the Eredivisie last season, enjoy a close relationship with the Blues.
Lucas Piazon, Bertrand Traore, Patrick van Aanholt, Christian Atsu, Gael Kakuta and Sam Hutchinson have all spent time at the Dutch club in the last 12 months.