Wallace fears for his Scotland future after being overlooked for Wednesday night's friendly against Australia following his decision to stay at Ibrox and help the club's Irn-Bru Third Division campaign.
But the former Hearts player agrees with Levein's assertion that a drop in club standard will make it more difficult to adjust to international football.
Levein last week said he had not closed the door on Wallace but admitted that playing in the Third Division made it difficult to pick him.
He then called up Rangers midfielder Ian Black after several more midfielders became unavailable, but stressed yesterday that the former Hearts player was in as back-up.
Wallace, who was an unused substitute in Scotland's previous game, a 5-1 defeat by the USA in May, told his club's official website: "I'm a bit disappointed not to have been called in but that's just life. I'll take it on the chin and if I'm not involved, I'm not involved.
"I'm a Rangers player so I'm coming in here and getting on with my job as normal. That's the way I look at it.
"I was happy enough to be involved in the trip at the end of last season, albeit I was called in as a reserve which isn't always great.
"If you're called upon, you get on with your job and that's what I did. I'm disappointed but that's as far as it goes and I'm not going to lose any sleep over it.
"I've got respect for the manager and I'm never going to come out and say anything against him. I don't know how he is thinking.
"I think within the Scotland camp he has done well to get the team spirit which has been shown going over the last 18 months.
"I do buy into the fact that when you're playing in the Third Division, you're going to be a bit off the level and the standard required. I agree with that."
The 25-year-old said: "What has happened over the last couple of days with Ian going in is the manager's decision and I'll respect that.
"There's disappointment but I wish Blackie all the best for his first cap and his first call into the Scotland squad."
When asked about his future international prospects, Wallace said: "I don't know about that really. After what has happened in the last couple of days, I do question that.
"But just now, for me, it's all about Rangers. That's how I'm approaching things and we've got a massive season ahead on this adventure of ours.
"I'll enjoy coming in here to train as I do and I want to help the club try to move forward."