Allardyce impressed the panel with his ability to organise a side and impose a clear identity on his squads.
Sunderland have been left in the dark over the move however and released a statement shortly after their 3-0 pre-season win over Hartlepool.
They said: “Naturally we are aware of the intense media speculation this evening, however, at the present time Sam Allardyce remains Sunderland manager.
“We share in the anger and frustration of our supporters and would like to assure them that we are working to conclude the matter in the best interests of Sunderland AFC.”
Allardyce’s first challenge in his new role could be managing England in a friendly on September 1.