The Scottish winger was transfer-listed after a disagreement with the manager in January and the Black Cats accepted a bid for him from Preston earlier this month.
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Sign up for free SAFC email updatesBut Wallace – who had suffered a knee injury in the week he was transfer-listed and missed three months of action – turned down the move and hopes for a fresh start.
Keane has now taken him off the list, and Wallace (pictured below) is aiming to make the most of his opportunity. He said: "I spoke to the gaffer in the summer when the bid came in from Preston and he said he would be more than happy to see me back in training fighting for my place.
"After having my injury, I felt I needed to come back after the summer. I wouldn't say I needed to prove myself, but I feel I have a lot more to give Sunderland.
"I felt pretty good last season. There were games I should have done better, but then the gaffer made his decision, I got injured and I had to concentrate on getting fit for the end of last season."
Wallace made his comeback from injury in time to feature in the last game of last season and has put the fact he was place on the transfer list behind him.
"The gaffer never said the door was completely closed to me and that gave me the incentive to try to turn things around," said the former Celtic midfielder, who can also play full-back.
"I've not been wondering this summer if I would be moved on – I've been focused on coming back prepare for another season with Sunderland.
"The gaffer has always been honest with the players. If you're playing
well and showing the right attitude, you'll be in the team.
"He doesn't say something to you for the sake of it – he wasn't bluffing when I went on the list. But he gives you the chance to change thing."
Sunderland's opening pre-season game against Sporting Lisbon on Sunday did not finish until gone 11pm and it was approaching midnight when the squad go back to its nearby hotel.
But Keane still had the players working again at FC Ferreiras Stadium just outside Albufeira yesterday morning.
"Everyone has looked good and no-one seems to be struggling with the sessions or the heat," added Wallace.
"Hopefully by the time the season starts against Liverpool, we should be playing well."
The Black Cats' stay in Portugal ends with a friendly against Vitoria de Setubal tomorrow night.
The full article contains 456 words and appears in Sunderland Echo newspaper.