Wallace told The Associated Press on Sunday he heard from a lot of teams, but agreed to a two-year deal about a week ago because he wants to retire with the Pistons. He'll make $1.9 million each season.
Pistons president Joe Dumars said on the first day of free agency that the team's first order of business was to keep Wallace and restricted free agent Will Bynum.
The 35-year-old Wallace was one of Detroit's best players last season when it missed the playoffs for the first time since 2001.
The center helped the Pistons win the 2004 title during his prime when he was the Defensive Player of the Year four times in five years.