Wallace had not been picked for Scotland since dropping to the Third Division with the Ibrox side but he returns along with Birmingham winger Chris Burke and Leeds forward Ross McCormack.
Strachan said: “Lee’s been in the squad many times and played and he’s been a good player. I see no reason why he’s still not a good player.”
Celtic winger James Forrest is one of four Parkhead players selected, while the likes of Kenny Miller and Alan Hutton are also in.
South of the border, Ashley Cole is in line to become the seventh player to win 100 England caps after being named in Roy Hodgson’s squad for next week’s friendly with Brazil at Wembley.
Cole was part of a strong 24-man squad announced yesterday, with youngsters Raheem Sterling, Jonjo Shelvey and Wilfried Zaha all excluded as expected.
Tottenham’s Scott Parker also misses out despite being fit again after returning from Euro 2012 with an Achilles injury.