The 26-year-old New Zealand international is out of contract in the summer, and as yet has failed to agree new terms with the Irons.
Allardyce, who takes his side to Everton in the third round of the FA Cup on Tuesday night, now feels the player has decided to further his career elsewhere, with the likes of Arsenal and Manchester United having been touted as possible destinations.
"There is no future for Winston Reid at West Ham United at the moment because his contract finishes on June 30," said Allardyce, who maintains there had been no contact from any clubs so far in the January window.
"He hasn't said he is going to sign and he hasn't said he isn't, but you would err on the side that he isn't by the feel and the look of it at this moment in time, by the know-how in the football world I have been talking to - other managers and so forth about the situation.
"So I would say it is highly unlikely that Winston is going to sign for us based on what people are saying to me."
West Ham earlier this week moved to bring in 21-year-old Canada international defender Doneil Henry, and forward Mauro Zarate is expected to leave, with Crystal Palace now emerging as a rival to QPR's interest.
"I thought it was all done and dusted with QPR (for Zarate), but that doesn't seem to be the case for whatever reason
When the situation has been decided we'll deal with it from there," said Allardyce.
West Ham are continuing to assess the extent of the back injury suffered by forward Diafra Sakho against West Brom, which could prevent him from being able to join up with Senegal at the African Nations Cup.
Allaryce confirmed: "He is seeing a specialist in London at the moment
He has had all the appropriate scans, but we need to sit down and assess the extent of the injury - has it got any worse since the last time? Is it the same (problem)?
"With a back, it is a delicate scenario, so until we get the full diagnosis from the specialist today, we won't know which will be the way forward."
Midfielders Cheikhou Kouyate and Alex Song have both left for international duty, while defender James Tomkins, who was suspended for the 1-1 draw with West Brom on New Year's Day, faces a fitness test on an ankle problem.
Allardyce admits he has few options of player rotation, but the likes of Ricardo Vaz Te and Matt Jarvis are expected to feature at Goodison Park.
He said: "With four day's rest there is sufficient recovery time to go and have a go against Everton, it has given us a little bit of breathing space.
"Everton have had some injuries to key players in important positions, so if there is a lack of confidence hopefully we can exploit that."
Source : PA
Source: PA