Cincinnati has also waived QB Jake Dolegala, per Pelissero, leaving them with just two on the active roster at the moment.
Allen was signed a month ago to compete for the backup job in camp for Cincinnati but now will have to hope for a spot on the practice squad.
Allen, 27, is a former sixth-round pick out of Arkansas by the Jaguars back in 2016. He was entering the final year of a four-year, $2.4 million rookie contract when the Jaguars somewhat surprising waived him coming out of the preseason.
The Rams claimed Allen off of waivers and he bounced on and off their practice squad for a few years. The Rams waived Allen coming out of the preseason last year and he was later claimed by the Broncos.
Denver declined to tender Allen as a restricted free agent this offseason and he signed a one-year deal with the Bengals in August.
In 2019, Allen appeared in three games for the Broncos and completed 46.4 percent of his passes for 515 yards, three touchdowns, and two interceptions. He also rushed for 39 yards.