The 26-year-old restricted free agent will play under the one-year, $2.7-million tender offered by the Steelers and hope something lengthier is worked out before the regular season begins next week. As a rule the Steelers don't negotiate contracts during the season.
Wallace, who caught a career-high 72 passes for 1,193 yards and eight touchdowns last season, remains optimistic an agreement can be reached sometime before Pittsburgh faces Denver on Sept. 9.
Wallace spent a significant amount of time during his holdout working with trainers in Florida and refining his route-running looking to avoid another slump like the one he endured at the end of the 2011 season. He posted four 100-yard receiving games in the first seven weeks of the year but didn't top 82 yards in any of Pittsburgh's final nine games as defenses adjusted.
Also on Tuesday, the Steelers activated linebackers James Harrison (knee) and Jason Worilds (wrist) from the physically unable to perform list and released running back Jason Ford, signed earlier in training camp.
Redskins replace kicker Gano with Cundiff
Gano appeared to have won the Redskins job after his competition in training camp, Neil Rackers, was cut on Monday.
Falcons sign McCown as backup quarterback
Chris Redman, who spent the last four seasons as the Atlanta Falcons' No. 2 quarterback, was released so the team could sign Luke McCown to back up starter Matt Ryan. McCown was cut by the New Orleans Saints on Monday.
The Tennessee Titans removed receiver Kenny Britt from the physically unable to perform list, though he will not play Thursday night in the team's exhibition finale against New Orleans. Britt will join the active roster Wednesday.
Britt could still be punished by the NFL for his eighth incident involving police since being drafted in 2009. He was charged with driving under the influence July 20.
Bengals center Cook could be out for season
Cincinnati Bengals center Kyle Cook could be lost for the season because of a foot and ankle injury. Cook hurt his right foot and ankle when a defender fell on it during an exhibition game on Thursday night.
Westbrook will retire as an Eagle
Brian Westbrook will officially retire as a member of the Philadelphia Eagles on Wednesday and will be honored during a game against Washington in December.
The former All-Pro running back played eight seasons with Philadelphia from 2002 to '09. He is the franchise leader with 9,785 total yards from scrimmage.
He last played in the NFL with the 2010 San Francisco 49ers.