Carroll scored his sixth goal in 11 matches last weekend to help the Hammers keep their mid-table form going with a 1-1 draw at Southampton.
Allardyce believes that the 24-year-old deserves to be considered among the top strikers in the Premier League if he can maintain his current level of performance.
He told The Mirror: "Andy is very important for us. I always said once he got match-fit he would put the goals in the back of the net and show he is a good scorer as well as a top player and a strong target man.
"We have to sit down at the end of the season and make decisions on all of the out-of-contract and loan players, including Andy. If it could be done, it would be very nice but there's a long way to go between now and then."
Carroll's future remains open to speculation but the striker has admitted that he has not ruled out a permanent move to East London next season.