The Spaniard is expected to return to Spain this summer after a successful spell at the Reebok Stadium, yet the Trotters boss is hoping the player will lower his wage demands and extend his stay in England.
"We are stuck in the middle of negotiations with Ivan," Allardyce told the club's official website. "Whilst we would like to keep him, his demands have to be realistic. We won't be held to ransom by any player.
"Hopefully, we'll reach a compromise and get things sorted sooner rather than later. I would like him to stay, but if he goes somewhere else then so be it."