Allen has had to wait for his Barclays Premier League chance after being on the bench for the opening few games of the campaign, but now looks to have established himself in the first team thanks to his good run of form.
And Rodgers said: "Joe is a wonderful talent, he is a great kid and, if he stays here for his development, in the next couple of years he can become a top player.
"He has great composure and he needs to play in a team that plays good football, that's the reality of where he is at.
"He played a lot of games last season, although he has not played as many this time, but he is a clever boy. He doesn't waste his time doing stupid things, he concentrates on his football, looks after himself and prepares well. He is only 5ft 7in but his performance against Stoke was 6ft 7in."