JULY 11TH, 12:08pm: The Nets have officially re-signed Wallace, the team announced today (via Twitter).
JULY 1ST, 10:34am: A source tells Howard Beck of the New York Times that all four years of Wallace's contract will be guaranteed (Twitter link).
9:30am: The Nets will sign Wallace for four years and $40MM, tweets Fred Kerber of the New York Post. Adrian Wojnarowski of Yahoo! Sports confirms that the two sides have reached an agreement (Twitter link).
9:23am: The Nets and Gerald Wallace are close to verbally agreeing to terms on a new contract, tweets ESPN.com's Marc Stein. Wallace, who was acquired by Brooklyn at this year's trade deadline, declined his 2012/13 player option, but didn't necessarily intend to leave the Nets, preferring a multiyear contract to an expiring deal.
While Wallace was expected to draw some interest from teams in need of a small forward, it would have been surprising if the Nets had let him get away. In order to acquire Wallace, the team infamously traded away a lottery pick that turned into Damian Lillard, so it was unlikely that they would have let him walk after just 16 games as a Net. Brooklyn also seems to view the 29-year-old as a piece that could help convince Deron Williams to re-sign.
About a month ago, a report suggested that Wallace and the Nets could agree to something around three years and $24MM, but Stein says the new contract is expected to be for four years (Twitter link). While is doesn't appear Wallace will top the $9.5MM annual salary he could have earned had he opted in, the total guarantee on his new deal will greatly exceed that amount.