Mark Warburton is seemingly keen for the 28-year-old to continue leading Glasgow Rangers on their journey back towards the top.
The defender has been one of just a few players that have been at Ibrox for the entirety of their journey from the doldrums of the bottom tier all the way back to the Scottish Premiership.
And Mark Warburton has given a clear indication that he wants the 28-year-old to continue leading the side by opening talks regarding a contract extension ahead of their first campaign back in the top flight. And it is clearly a decision that has most definitely received Johnstone's approval.
"I think the manager is absolutely right to try and extend his terms and hopefully get him on a three-year deal because he's been outstanding," he told the Evening Times.
"The majority of punters will be delighted as well. They have a lot to say on what goes on around Rangers these days and who is brought in. The manager has signed some great players, but to get Lee signed on again for another three years would thrill everyone as a great piece of business.
"Since he first came in to Rangers, Lee has just got better and better. Under Mark Warburton, he loves the position he's playing in and the way he's playing it. He's allowed to get forward because he knows because there are holding midfielders he can push up the park."
Along with the cluster of new signings that Warburton has already secured, getting Wallace tied down for longer would undoubtedly provide the entire squad with a major boost that should help them make an immediate impact at the highest level.
Though the manager has very quickly made it clear that he wants to improve the quality and depth within his squad, Wallace's proposed new contract confirms that he believes that the team that got them promoted from the Scottish Championship is not only capable of re-establishing the team in the top flight, but also has a role to play as the expectations rise in the coming years.