NFL Network's Ian Rapoport reported Saturday the Bills are "expected to approach his representation about a potential massive contract extension this spring or this summer."
Allen's rookie deal carries him through 2021, and Buffalo can trigger a fifth-year option for 2022.
The 2018 No. 7 pick enjoyed a monster regular season. He threw for 4,544 yards and 37 touchdowns with 10 interceptions while completing 69.2 percent of his passes, a massive jump compared to 2019 (58.8 percent).
On Dec. 18, The Athletic's Matthew Fairburn wrote "the practical thing to do" is to wait until after the 2021 season to hammer out a long-term extension. The salary cap might rebound a bit from the effects of the COVID-19 pandemic, and Buffalo will have another year to see whether Allen can continue to improve or at least maintain this level.
The Los Angeles Rams signed Jared Goff to a four-year, $134 million deal in September 2019 as he was coming off his second straight Pro Bowl campaign in his third year. That contract has turned into an albatross because of Goff's regression.
The downside is that Allen's value might be even higher this time next year, both through his own performance and contracts handed out to other quarterbacks. Dak Prescott will be a free agent this offseason, and Lamar Jackson could get an extension from the Baltimore Ravens since he's on the same timeline as Allen.
The Bills haven't had a franchise quarterback since Jim Kelly retired after the 1996 season. They're obviously going to make every effort to keep Allen around.
All things considered, Buffalo may be smart not to rush in to anything given how much time it has before the 24-year-old can hit the open market.