The 49-year-old had been top of the shortlist to succeed Arsene Wenger should the Frenchman decide not to accept the tabled contract extension at the Premier League club.
But with Wenger looking increasingly likely to stay at the Emirates Stadium, Allegri has set his sights on remaining at the Scudetto holders for the foreseeable future.
Juve splashed €90 million on Gonzalo Higuain this summer as a show of intent, having sold star midfielder Paul Pogba for a world-record fee, and the Argentine striker is complemented by the likes of Paulo Dybala, Leonardo Bonucci and Gianluigi Buffon.
Allegri, whose current Bianconeri contract expires in June 2018, is highly-rated by club chiefs for his consolidation of domestic dominance in Italy where Juventus are on course to win a sixth successive league title.
No club in a major European league has shown domestic dominance to the level of Juventus in the past decade, although Bayern Munich are increasingly splintered away from the rest of the Bundesliga's chasing pack.
Allegri was an unpopular replacement to Antonio Conte among fans in 2014 when their beloved coach departed after a fall-out with the board for the Italy job.
However, he quickly won over Juve supporters with a fourth Serie A title in a row and a Champions League final run, where they lost to one of the strongest Barcelona teams in history.
Allegri's healthy relationship with Juventus' chiefs means a contract extension is now a formality.
It's a stark contrast to a couple of months ago when Allegri looked likely to leave for Arsenal, with Luciano Spalletti and Paulo Sousa rumoured to replace him in charge of Juventus.