The Bulgarian has been linked with numerous clubs this summer after Sir Alex Ferguson revealed that he would allow his record signing to leave the club.
However, Allardyce has effectively ruled West Ham out of the running for his signature, after admitting that they could not afford his wages.
"I don't think we have got the finance for Dimitar Berbatov," Allardyce told Sky Sports News.
"The financial package for the player's wages is one that I think would be beyond us."
It is likely that the Bulgarian will be in the squad when United face Southampton on Sunday.