
Joining the Saddlers from Forest Green Rovers in the summer of 2022, Walsall-born Allen has emerged as one of the club's most consistent performers, operating as both a left-back and centre-back over his 62 club appearances.
Speaking via the club's official website, Head Coach Mat Sadler welcomed the news, he said: "I’m delighted to get Taylor’s contract sorted.
"It was something from last season that I wanted to get done.
"It was something from last season that I wanted to get done.
"We had the option in his contract anyway so we knew we were able to be a bit more relaxed on sorting it out but it was also something I was eager to show Taylor how much we want him at the football club.
"He’s been amazing in the last 12 months. He’s taken the position, really ran with it and he can play multiple positions for us.
"He’s a wonderful person and continues what we’re trying to build – that continuity of players we want to build with and that’s another one in that category."