The Welsh midfielder has a complicated contract, which could see the Merseyside club spending up to £15 million on the player.
To make negotiations more confusing, if a different club bids for Allen, Liverpool can propose a lower price.
This puts both teams in a difficult position. Allen will undoubtedly want to join up with his old mentor, but he could see his move scuppered if a heavy fee is imposed.
With the signing of Fabio Borini and failed attempt at landing Gylfi Sigurdsson, Rodgers has made it clear he is keen to link up with players he has trusted in the past. Allen, who is currently preparing for Olympic duty with Great Britain, was pivotal to Rodgers' success at Swansea City last season.
Talks with the American playmaker have stalled over recent days, as Liverpool and Fulham continue to clash heads over price.
Rodgers doesn't have the funds his predecessors have enjoyed, and it could be the offloading of Andy Carroll that allows him to land both targets. If a £20 million bid is made, it is likely to be accepted (via The Independent).
Either way, it is clear Rodgers is bringing his Liverpool philosophy together.