Following the sacking of Jose Mourinho earlier this week, Spurs appointed Mason as the interim manager until the end of the season.
The Tottenham manager won his first game in charge against Southampton on Wednesday and will be leading Spurs out in the EFL Cup final this weekend at Wembley.
Allen is happy to see Mason take charge of Tottenham on a temporary basis and believes his love for the club is important as the north London side try to navigate out of the season.
He feels the former midfielder is the right kind of character to hold the fort at Tottenham now and believes as a young manager in the making, it will be a great experience for him as well.
But the former Spurs star does not believe Mason will get the chance to be the permanent manager at Tottenham in the summer.
Allen said on talkSPORT: “Ryan is a Tottenham kid, he came in as a very young player and he loves the club.
“He has said all the right things, he is the right fit at the moment to just hold the fort until the summer.
“He is certainly a young manager in the making so what an opportunity for him and the experience he is going to gain over the next seven games.
“But long term, it is unlikely that he would be the permanent manager.”
Tottenham are working towards identifying a new manager and has been linked with several names.