Wallace went on to have surgery on his fractured bone on his left foot and hasn't played since.
He was expected to be out at least eight weeks and the Knicks are looking forward for him to be back in the playoffs rather than releasing him and sign another player to fill his spot. More from Mike Woodson as he explains their stand in keeping Wallace (source: Ian Begley from ESPN New York):
"We know that the surgery was successful, now it’s just up to him to rehab. He wants to play. That was the whole reason for bringing him," Woodson said. "Unfortunately he’s had this surgery. It happens. We didn’t expect STAT to go through what he went through earlier in the year. The door is still open for Rasheed to come back and play. He’s just got to put in the time and rehab and put in the time on the floor because he can help us in the long run."
Sheed was an integral piece in the Knicks roster with averaged 7.2 points/game and 4.2 rebounds/game in 14. 6 minutes of playing time per game in 20 games. Not only did his contributions from the bench helped the Knicks early, his locker room presence and veteran leadership also contributed for their run.
Another thing to note is that if the Knicks opt to replace Wallace with another player, it is hard to find possible candidates to replace him at this point of the season. Players had to be placed on waivers before the March 1 deadline to be allowed to play for any playoff-bound team. Maybe this is the reason why they decided to keep and wait for him.