The Welshman has been dogged by injuries and inconsistent form, but recently the 24-year-old has impressed Rodgers with his performances in the Premier League.
"Joe is a really intelligent footballer - he understands the ball, he protects the ball really well for the team, and his work-rate and intensity is incredible," Rodgers told the club's official website.
"He's going to prove to be an outstanding player here. At the moment, he's nearly at the top of his game and performing very well. I'm hopeful that will continue at the weekend."
Allen moved to Liverpool from Swansea City in 2012.