The 19-year-old, who made his debut in the 2015/16 season, cemented his place as a first-team player under Allardyce this season.
"He was very good," Allardyce told the club's website. "In two seasons he has had a massive learning curve for one so young.
"[He was part of] the brilliant season Everton had last season, particularly here at Goodison, and received many accolades.
"And now he has experienced more of a struggle [as a team]. And the experience should hold him in good stead to become a bigger and better-quality player than he already is."