The 30-year-old has been on the periphery of the Hibs first team all season and, according to reports, manager Shaun Maloney is prepared to let the popular playmaker leave Easter Road this month.
Allan, who started Maloney’s first game in charge against Aberdeen, has six months remaining on his contract and The Scotsman understands that Hibs may be prepared to let him leave for nothing in order to further the former Celtic player’s first-team football opportunities.
Allan almost left Hibs last summer for St Mirren in the deal which also involved Jamie McGrath moving in the opposite direction, but the transfer fell through at the last minute.
Hibs have also told midfielder Melker Hallberg and left-back Sean Mackie that they can leave the club this month. Alex Gogic could also depart, having been linked with several clubs.
Martin Boyle has already been sold to Saudi Arabian side Al-Faisaly, but new boss Maloney has recruited seven players, with left wing-back Demetri Mitchell the latest.