Allen is the second veteran to sign a big extension with the Broncos this summer. Earlier this week, wide receiver Courtland Sutton signed a four-year, $92 million deal that included $41 million in guaranteed money.
A third-round pick by Arizona out of Boston College in 2019, Allen joined the Broncos two years ago, following defensive coordinator Vance Joseph to Denver. He had five sacks in his first season in Denver and a career-best 8 1/2 sacks last season when he earned second-team All-Pro honors.
Allen, who turns 28 this month, also set career bests last year with 15 tackles for loss and 40 quarterback hits.
Other Broncos angling for new contracts this summer include rising star linebacker Nik Bonitto and defensive lineman John Franklin-Myers.
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