Tigers football manager Craig Cameron said the decision would be made later this week and announced on Saturday.
Wallace retired on Monday morning just days after the Tigers’ stirring win over Fremantle, which also brought up his 500th game as a player and coach.
Fittingly, Wallace's last game will be between the Tigers and the Bulldogs, the two teams he has coached at AFL level and sides he also represented as a player.
Richmond has a 2-8 record after 10 rounds of a season that promised so much after they stormed home in 2008, winning eight of their last 11 games to miss the finals by just half a game.
Wallace fronted the media at midday on Monday and said his position became untenable once he had decided he may continue at another club in a different role next year.
He said it would not be right for him to be involved in decisions on players' futures, drafting and the direction of the club when he wasn't going to be senior coach in 2010.
"No one is angry with each other," Wallace said. "The club is not angry with me, I'm not angry with the club, I'm not angry with the players.
"It was just a mutual decision that this was the right time to step away.
"So the long journey of 32 years is finished."
He admitted it was highly unlikely he would coach again given his lack of success at Richmond.
"I have a strong corporate background and am really keen to stay in the game," he said. "There are many areas of the game I could be involved in and I am really strong and passionate to stay in the game."
He said his mind turned to his own future once he realised his coaching career was over. He thought senior managerial roles at other clubs might be one of the avenues he would pursue beyond 2009.
This meant he needed to leave Richmond sooner rather than later for the benefit of both parties.
He also said the constant speculation had not bothered him too much but had become overwhelming for the Richmond players.
"You've got guys who are 20, 21 and 22 and who had cameras in their faces on a regular basis and I felt for their sakes as well, the relief of the decision being made and them being able to get on with the rest of the year was the best way of going forward," he said.
"I haven't taken anything that has been written personally at all, I've just seen it as part of the bigger picture. If it had have happened in year eight of a 32-year career you would have almost forgotten about it by now so that's the way I've felt about it."
Wallace played 174 games with Hawthorn, 11 with Richmond and 69 with the Bulldogs, collecting thee premierships with the Hawks along the way.
His playing days finished in 1991, and in 1996 he took the reins of the Western Bulldogs, a post he held until 2002. In 2005, he took over at Richmond, where he is the senior coach, having guided the team in 97 matches.
