The Scotland international was the subject of two bids by Nottingham Forrest during the January transfer window, but both were knocked back by the Gers board.
That allowed boss Ally McCoist to include Wallace in his side for the 2-1 win over Brechin City at Ibrox as the Light Blues made it 22 wins from 23 games.
However, the 26-year-old former Hearts full-back claimed he never had any intention of moving south.
He said: "I'm over the moon to still be here. We have a championship to wrap up, the Ramsdens Cup final to look forward to and a Scottish Cup game coming up that we want to do well in. And we're nearing the second stage of our recovery as a club.
"I'm more than happy to be part of that and I see myself being here for a long time.
"It was easy to ignore all the speculation. That's just the type of guy I am. It's just Rangers for me and always has been.
"You obviously hear about the speculation, but I was just solely focused on Rangers.
"If a bid had been accepted I would have dealt with it, but now I'm just delighted I can play my part in helping the club move up the leagues and getting us back to where we belong."
Wallace was named man of the match by the Ibrox sponsors, but Rangers struggled to shake off the tireless Hedgemen.
Dean Shiels swept home a fine opener after 13 minutes as he curled the ball over the head of Brechin keeper Graeme Smith.
And Jon Daly claimed his 20th of the season with a deft header from a Wallace free-kick on 25 minutes.
But Bilel Mohsni's needless second yellow card for kicking the ball against Gerry McLaughlan on the hour mark came just after Steven Robb had halved the deficit with a 25-yard wonder strike and Rangers were forced to scramble over the line in the closing stages.
McCoist said: "I thought for 35-40 minutes we were good, really good. We could have - and should have - been more than two up. But the sending-off completely changed the pattern of the game.
"I'm extremely disappointed in Bilel. He gave the referee the opportunity to give him the second yellow.
"I plan to speak to Bilel about it. He should know better. You get taught not to do that in school. It was a needless second yellow."
Brechin tried unsuccessfully to take advantage of nerves in the Ibrox ranks in a hectic last five minutes, but boss Ray McKinnon could not fault his men.
"We thought we might have snuck a draw at the end but it wasn't to be," he said. "We gave everything we had and I'm pleased with how we played.
"I said to the boys after that we didn't take anything out of the game and that is all that counts. We were caught in the headlines in the first half, but I was delighted that they showed what they are capable of in the second."