Allen's future has been up in the air since the end of last season.
Allen's future has been the subject of much speculation with the Wales international out of contract next summer and he has been linked with a move away from Anfield, with former club Swansea City said to be interested in the 26-year-old.
The midfielder had an impressive Euro 2016 as Wales reached the semi-finals, and saw an upturn in his form under Jurgen Klopp for his club during the second half of the Reds' season.
Allen is expected to report for pre-season training on July 26 when Liverpool are touring the United States. Klopp has already spoken about trying to get the player's future resolved sooner rather than later in an interview with the BBC last week.
A lot will depend on Liverpool's transfer business as they look to target a new central midfielder. Mahmoud Dahoud and Piotr Zielinski had both been linked but it appears they have turned their attentions to Newcastle United's Georgino Wijnaldum, with the Liverpool Echo reporting they are pursuing a deal for the Dutchman that could be worth around £25 million.
It does seem that if Liverpool get their man then Allen could be surplus to requirements this summer, and the club may want to cash in on him even though he proved towards the back end of the season that he can have an effective role within the Liverpool squad.
However, at his age the chances are that he will want regular first-team football and one doubts that he will get that at Anfield, especially without the club's participation in Europe next term.