The decision is said to have been made to temporarily write the Kat Slater star out of the long-running soap after she was allegedly ”tipsy” and “verbal” while filming the 35th anniversary episode.
According to The Mirror: ”Jessie was clearly tipsy and got very verbal. She made an a**e out of herself – it’s was quite sad to see.
Wallace is said to have “been given two months to sort herself [out]”.
“Everyone is hoping this is just a blip,” the source added.
Initial reports claimed that Wallace had been suspended following an alleged “incident” that took place during filming.
A “well-placed insider” told the publication that Wallace, 48, was called to a “crisis meeting” with producers, during which her behaviour was “called into question”.
Wallace’s scenes for the anniversary episode, which will be broadcast on 19 February, were filmed alongside cast member Davood Ghadami, who plays Kush Kazemi.
A BBC spokesperson said: “We don’t comment on artist’s contracts.”
The Independent has contacted Wallace’s agent for comment
Speaking about the episode, executive producer Jon Sen said: “For the 35th anniversary we wanted to entertain the EastEnders audience on the iconic river which has heralded the start of the show for 35 years.
“This unmissable week of episodes is destined to be exciting, gripping and heart-breaking – it will be a week that will go down in EastEnders history.”