Schultz adds Allen can make a maximum of $3 million on the deal.
Allen, 26, signed on with the Panthers as an undrafted free agent back in 2018. Allen was waived coming out of the preseason before the Panthers added him to their practice squad before being promoted late in the season.
The Panthers re-signed Allen to a one-year contract in 2020, but later traded him to Washington for a fifth-round pick. Allen was placed on the injured reserve list after undergoing surgery for a dislocated ankle in November.
Allen was slated to be a restricted free agent in 2022 when the Commanders declined to tender him.
In 2021, Allen appeared in two games for Washington and completed 12 of 19 passing attempts for 120 yards, one touchdown and no interceptions. He also rushed twice for 11 yards.