Allardyce insists both parties are keen to find a solution.
"We both want to do it, it's just a question of sorting out the dotting of the i's and crossing of the t's," Allardyce told Sky Sports News HD.
"As always, that is not as easy a situation as you would like.
"You always have to do some negotiations when you are moving into the next contract, just as there were plenty of negotiations over the first contract.
"So we will hopefully come to a conclusion very shortly."