Roberto Martinez is delighted Allen has signed a new deal

The promising 17-year-old, who was also called up to Wales' under-21 squad this week, has committed himself to the club until 2010.

Narbeth-born Allen, who joined the club as a nine-year-old, is delighted to be staying at the Liberty Stadium.

"It's what dreams are made of and I'm ecstatic, but I know I've still got plenty to work on," Allen told the Swansea City website.

It's fantastic to have such Welsh talent in the squad Roberto Martinez

Allen was voted man-of-the-match against Walsall in midweek and boss Martinez is pleased to have secured the services of the young midfielder.

He said: "I'm delighted that we've secured the services of such exciting talent.

"It's fantastic to have such Welsh talent in the squad. I'm sure he has a bright international future ahead of him and an exciting career with Swansea City."