The 21-year-old will be sidelined for up to six weeks.
The Wolves' head of medical Phil Hayward told the club's official website, "He will be out for probably four to six weeks and we will have to see how he progresses, but he has a chance to be back and available before the end of the season,"
Wallace has made eight appearances for Wolves since leaving Portsmouth in May and he has spent two months on loan at Millwall.
NEWS | Jed Wallace will be sidelined for four to six weeks with an injury to his quad picked up against Burnley on Saturday.
— Wolves (@OfficialWolves) March 23, 2016