Allardyce's current deal expires at the end of the season and co-chairman David Gold recently stated that talks over an extension would be held in the summer.
However, Allardyce is keen to start planning for next season and sees no reason to wait until the campaign is over to hold negotiations, if the Hammers are safe.
"We'll sit down when we're safe," said Allardyce. "What's the point me waiting until the end of the season if we're mathematically safe with a few games to go?
"There's no point in that is there? We need to start budgeting."
West Ham are currently 12th in the table with 33 points, nine points clear of the relegation zone, and Allardyce feels 38 points will be enough to preserve the club's top-flight status.
He added: "I think we need another five points. Thirty eight will make you safe this year but we will all aim for 40 just in case.
"Hopefully we will be safe as soon as possible because there is a lot to negotiate and a lot to move on, which we are doing."
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