The Belgium international, 23, has been in sublime form for Wolfsburg since joining them from Chelsea in January 2014 and the reigning German champions are believed to be keeping a close eye on his situation at the Volkswagen Arena.
"We might have to let go of certain players," Allofs told Kicker when questioned about potential departures.
"Of course, Kevin has the potential to play for Bayern Munich. But he also needs the right conditions in order to do shine and to be given the right role. That's the case at Wolfsburg, but I don't know whether he fits Pep Guardiola's philosophy.
"We got lucky that Kevin was unhappy at Chelsea when we signed him. It didn't work out for him under Jose Mourinho. Unlike Wolfsburg, Bayern are capable of signing big names even if they are happy at their club, though."
De Bruyne has netted three goals in 17 Bundesliga appearances so far this term, while providing 10 assists.
The former Genk star has a contract with Wolfsburg until June 2019.