Wallace put pen to paper on the extended contract to become the latest player to commit his long-term future to Rangers.
And McCulloch firmly believes the sky is the limit for the former Hearts man, who has impressed the skipper with his winning attitude since his arrival at Ibrox just over 12 months ago.
Wallace’s deal comes hot on the heels of Lewis Macleod, Barrie McKay and Robbie Crawford all pledging their futures to the club.
And that, for McCulloch, is a positive sign for the future of the Light Blues.
He said: "It's good news that the young boys have signed up for five years and Lee Wallace has just signed up for five years as well.
"I think that looks really good for the future.
"Big Lee extending his deal is great business. I think he's going to be a great Ranger in the future.
"Since he's come in he's been great to play alongside and he has a great attitude.
"I like the way he goes about things so I think he'll be a great in the future.”