The new Swansea City boss says he has no intention of selling his best players but admits he will have no choice if the club or a player are made an offer they can't refuse
Goal.com exclusively revealed that former Swans boss Brendan Rodgers is planning to take the 22-year-old midfielder to Anfield.
While Laudrup says he has not intention of letting Allen leave the Liberty Stadium, he understands his players will be targets for other Premier League sides.
"It's normal there is interest but of course we want to keep our most important players here," he told BBC Sport.
"But it's also a part of football to accept sometimes that people leave when the offer is too big - for the club or for the player."However, any move concerning Swansea and Liverpool will have its complications as the compensation package that saw Rodgers released from his Swansea contract insisted on a player protection clause, which prevents the Reds from bidding for Swansea's player for a year.
Although, if Swansea accept a bid from any other club for a player, then Liverpool can also make an approach.
"Last year was Swansea's first in the Premier League and some of the players were not that well known at the highest level," Laudrup added.
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"They were maybe well known here [in Swansea] but it was not known how they would do at the highest level.
"They've come up to the Premiership and other teams have seen them doing very well; these one, two or three players. I don't know what happened with that agreement [with Liverpool].
"Of course I will do everything to keep the best players here but we will just have to see when the moment arrives with one player and it's a fact we'll have to deal with it."