The West Ham United manager feels the more attacking right-back position should be the aim for the Red Devils star.
"The diversity he has in his game is obviously going to get him playing for Manchester United, and probably England, a lot quicker than people thought," Allardyce told talkSPORT.
"The only thing that will suppress his ability as a central defender is his outstanding ability on the ball.
"I think right-back might be even better for him because his attacking flair and attacking qualities are equally as good as his defensive qualities.
"He was very unfortunate not to score against Sweden and that shows that playing him at centre-back might suppress his great ability on the ball."