James is on the verge of an £18million move from Swansea to Manchester United and he was understood to be having a medical on Thursday.
The 21-year-old nearly joined Leeds six months ago but that switch fell through in the dying hours of the January transfer window.
He stayed with Swansea and continued his impressive form for the remainder of 2018/19, and James looks to have earned a move to the Premier League.
James’ Wales team-mate Allen believes it was good for the winger that his proposed move for Elland Road collapsed at the 11th hour.
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He said: “Leeds wouldn’t have been a bad move, of course not, but it has almost been a blessing it didn’t happen.
“In the second half of the season I think there is plenty of clubs above that level who have come to the fore and that is the sort of bracket he is in now.
“Second half of the season, he has been on fire.”