The Canadian club have approached Wallace's agent, having been alerted to his availability by a circular which lists players free to leave their clubs in England.

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But whether Wallace will fancy a move across the Atlantic - which could see him facing LA Galaxy star Daviv Beckham - so early in his career remains to be seen.

Toronto are managed by former Celtic, Glasgow Rangers and Everton star Mo Johnston.

And it was Johnston who was behind the signings of former Sunderland players Danny Dichio, Carl Robinson and Andy Welsh.

Welsh, like Wallace a left-winger, has since been released by Toronto but Dichio and Robinson remain and the purchase of Wallace would be a coup for a club which is busy establishing itself in the North American league where David Beckham plays.

Toronto are well-financed and their first season in the MLS has been a success with crowds of more than 20,000 turning up to support the East Coast side.

But the chance of getting a player of Wallace's calibre and comparative youth appeals to Johnston who has made an approach.

Johnston, has moved from being manager of Toronto in their debut season, to becoming the team's general manager and director of football operations.

And the brief for that job includes team strengthening, with the Scot looking to recruit players with their best years ahead of them rather than behind them.

Wallace was surprisingly put on the transfer list by Roy Keane in January, despite having played the majority of Sunderland's games up to that point.

The 22-year-old's misery was compounded a week later when he pulled up in training with damaged knee ligaments which effectively ruled him out for the rest of the season.

The injury has meant that no club has come in for him.

But Wallace is believed to be making a quicker than expected recovery and could even be close to fitness for the start of the MLS season in April.

Toronto know that Wallace is likely to want to stay in English footballl, either with a Premiership or Championship side – or even to try working his way back in Roy Keane's plans at Sunderland.

But they still think their interest has a realistic chance of success and plan to pursue the player, though they are concerned that other MLS sides might also follow up with a bid.