Wallace was recalled early from his loan spell at Millwall earlier in the week, after the attacking midfielder showed some great form down at League One level.
Wallace played 14 times for Lions, scoring once, and he had established himself as a key part of Neil Harris’ starting line-up.
However, Jackett now feels that the 21-year-old has a role to play at Molineux, and he has hinted that the youngster could have a role to play in his side’s match against Burnley at the weekend.
“I feel he’s going to be better equipped for the Championship, with both power and confidence, and with getting into a rhythm,” he said.
"Hopefully, now he can transmit that confidence into the Championship. Me bringing him back, I want to be able to give him the opportunity to play well in a Wolves shirt.
"He certainly has the ability. He’s got physically strong and is five kilos heavier now than when he signed in the summer.”
Wallace joined Wolves from Portsmouth last summer, but he struggled to make much of an impression initially.
The creative midfielder was deployed in a range of positions in his initial time at the Midlands club, but he never looked totally at home in Wolves’ team.
Wallace made just five starts for Wolves in the first five months of the season, before being sent out on his productive loan spell.