The 60-year-old's position as manager at Upton Park has come under increased scrutiny with his contract expiring in the summer.
The Hammers have already denied they have approached Jurgen Klopp, who will leave Borussia Dortmund in the summer, to replace the ex-Bolton boss.
Sherwood faces Allardyce at Villa Park on Saturday and reckons his opposite number would attract a lot of interest if he was available.
"It's up to them to make that decision but there'll be no shortage of takers for Sam Allardyce," he said.
"We're up against a manager who is the second longest serving manager in the Premier League. He has kept West Ham in the top half for many years and we have to respect the fact that.