The 27-year-old is enjoying a fine start to his time at Upton Park having moved to the club on loan from Barcelona at the start of the season.
Former Arsenal midfielder Song is attracting interest from some of the Premier League’s biggest clubs, with the Gunners and Liverpool believed to be looking into the possibility of bringing the ex-Cameroon international back to England on a permanent basis.
But Allardyce feels that the Hammers will be able to compete with those clubs for Song’s signature and still remain within the constraints of Financial Fair-Play.
“I think that next year is next year’s budget and there’s a considerable amount of fund available next season,” he replied when asked if West Ham could be priced out of a move.
“They can’t be spent this season because we’re at the extreme of that budget but next year is a completely new budget.
“So, affordable? It depends on what Barcelona are looking for and what Alex is looking for, that negotiation will happen at some stage in or around that period.”
Having brought in a number of new faces in the summer, Allardyce is likely to have to remain in the loan market if he is to bolster his squad in the January window and the 60-year-old does not envisage many deals in or out of Upton Park.
“We’re Financial Fair Played with no money available at the moment,” he added.
“I think what money we do have available is only wages so if a player pops up within that wage structure with what we’ve got left with financial fair play – and we feel it’s somebody who could have an immediate impact on the team – then we will pursue it but we think that’s highly unlikely in this window.
“But you never know what turns up in the next two or three weeks. We will never say never but probably highly unlikely.”
Allardyce also said there has been no change in Winston Reid’s situation despite a reported interest from Arsenal in the New Zealand defender.
Reid, 26, is out of contract in the summer but Allardyce has insisted in recent weeks he will not allow the player to leave on the cheap this month.
Arsenal have been struggling for numbers in defensive positions for much of the season and have again been hit by a long-term injury to Mathieu Debuchy.
They have Carl Jenkinson on loan at West Ham but Allardyce does not believe there is a chance he could be recalled to the Emirates Stadium before his deal runs out at the end of the campaign.
“I’m 99 per cent sure he’s ours for the season to be fair,” he said. “I don’t think there is a call back clause in this month.”
The Hammers welcome Hull to Upton Park on Sunday looking for their first Premier League win since December 20, having failed to pick up a victory in their last four league outings.
Hull have won twice in that time but Steve Bruce’s Tigers are embroiled in the relegation battle and could travel to east London bottom of the table if results on Saturday go against them.