The Raiders sealed a trade move for Schaub from the Houston Texans, sending a late-round pick for the 2014 Draft in exchange for his services.
Allen told the club's official website: "We brought Matt Schaub in to be our starting quarterback.
"We feel very confident that he is going to be able to come in and function in that role and be outstanding for us.
"Obviously, we love having competition within the team, but right now Matt Schaub is our starting quarterback."
Schaub threw for 2,310 yards along with 10 touchdowns to 14 interceptions in the 2013 season.