Wallace, who has played 189 times for his Province made his debut for Ulster in the 2001/02 season. The ex-Campbell College pupil began his career at fullback and outhalf but in recent years moved to inside-centre where he excelled for both his Province and his country.
The 34 year-old won 30 cap s for Ireland, the highlight of which was winning the Grand Slam in 2009.
He was part of the Ulster team that won the Celtic Cup in 2003 and the Ulster squad that won the Magners League in 2006. He played 54 matches in the Heineken Cup, the last of which was against Castres last season in Ulster's first win on French soil in the competition. He scored seven tries in the European competition, 101 points in total and played in the Heineken Cup final in 2012.
In the past 18 months his game-time for Ulster has been restricted due to injury. He played his last game for his Province, against Zebre, in December 2013.
Speaking about his decision to retire, Wallace said:
"I have been happy to call Ulster my home for all my life and to play at the one Province for a whole career is something that is really special.
"Professional rugby is all I have known for the past 14 years. I am going to miss playing at Ravenhill, the fa ns and everything involved with being a rugby player.
"However, I have lots of fond memories. I have had a great career and I wouldn't change anything for the world."
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