Townsend was once again left out of the matchday squad, and Allen believes that it would be best for the winger if he leaves the North London outfit this month.
"Andros Townsend is the subject of some interest from Newcastle,” said the former England international on BBC 5 live Sport. “He’s been frustrated with a lack of football this season, and it probably is the time for Andros to move on. But of course it all depends on the right fee…"
According to BBC Sport, Newcastle United are interested in signing Townsend from Tottenham in the January transfer window.
It has been reported that the Magpies have enquired about the availability of the England international winger and are in talks with Spurs over a permanent deal.
The 24-year-old has been struggling for playing time this season and has managed to make just appearances in the Premier League, creating only two chances in the process.
Tottenham are in the top four of the Premier League table at the moment, while Newcastle are struggling against relegation.