The former England striker was released by the Hammers in the summer but was re-signed on a short term deal that runs out next week.
Since returning, Cole has scored three goals in nine games and has had to play a major part with the East Londoners striker crisis at present.
Record signing Andy Carroll is now back in full training and Ivorian striker Lacina Traore is set to join the club next week, allowing Allardyce to have genuine options in the final third.
Despite QPR boss Harry Redknapp declaring his interest in the 30 year old, Allardyce wants to keep Cole at Upton Park.
“We’ve got that in mind and are talking about that as quickly as we possibly can because obviously it needs to be addressed,” confirmed Allardyce.
“Carlton will be dealt with very shortly.”