A day after canceling an interview with Chicago offensive coordinator Mike Tice, McKenzie told Philadelphia offensive coordinator Marty Mornhinweg he is no longer a candidate, a person with knowledge of the decision said Tuesday. The person spoke on condition of anonymity because the team had not released details of the search.
ESPN reported that the Raiders are negotiating a contract with Allen to fill the job. Allen first interviewed with McKenzie last week.
McKenzie is currently at the Senior Bowl in Mobile, Ala., and is expected to make his decision this week. McKenzie said in an email that he has not begun negotiating with any candidates.
Allen was scheduled to have a second interview with McKenzie in Alabama on Tuesday night.
"He's got a lot of stuff he needs to answer," McKenzie told CSNCalifornia.com. "Nah, it's not a lock, irregardless of other people's reports."
If Allen does get the job, he would be the first defensive-minded coach to get the Raiders job since John Madden was hired before the 1969 season.
Late owner Al Davis exclusively hired offensive coaches after Madden, including Hue Jackson, who was fired after going 8-8 in his only season on the job.
But there have been plenty of changes for the Raiders since Davis died Oct. 8. His son, Mark, took over the team and hired McKenzie as general manager after the season to take over many of the on-field and personnel decisions that Davis had made during his nearly half-century with the organization.
With McKenzie having spent almost two decades with the Packers, his former colleagues in Green Bay were originally considered to be the favorites.
But now it appears as though Allen could be the choice. In his first season as coordinator in Denver, he helped the Broncos improve from allowing a league-worst 29.4 points and 390.8 yards per game to ranking 20th in yards (357.8) and 24th in points (24.4) this season on the way to an AFC West title.