The West Ham boss has suggested that people within the England camp have told Parker that he needs to be playing in the Premier League to be considered for selection by national manager Fabio Capello.
"Scott has expressed an opinion that he wants to get back into the Premier League and play Premier League football," said Allardyce.
"That's come from someone in the England camp telling him that's where he needs to be. I don't see the logic behind that.
"Just because a player drops down a division, it doesn't mean he's turned into a bad player overnight and isn't good enough for England."
Parker has earned six caps for England and was included in the squad for the recent friendly against Holland, which was postponed due to the London riots.