According to rumours in today's media, Jose Mourinho is prepared to offer £20m for the Welshman.
With the 26-year-old midfielder's contract due to expire at the end of this forthcoming season and Liverpool in no rush to extend that, Allen has been linked with a move to Celtic to join up with former boss Brendna Rodgers, and also a move back to Swansea City.
But Manchester United are a surprise interested party and it will be interesting to see how this pans out.
"Obviously Joe Allen is a good player," Klopp told SkySports. "We never doubted this. He played a good European Championship, like the whole Welsh team.
"We have to make decisions, we have to find solutions. We have to talk to the player, ask the player and think about our situation. That's how it works."
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