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As confirmed by the OS: http://www.sufc.co.uk/news/article/2016-17/sheffield-united-james-wallace-3441238.aspx
James Wallace's contract with United has been cancelled.
The midfielder is now a free agent after his injury-hit spell with the Blades was concluded by mutual consent.
He played just 20 times for the Blades and has most recently been on loan at Tranmere Rovers.