Allardyce is keen to bolster his backroom team after seeing Kevin Keen leave for Liverpool earlier this week.
The former Bolton, Newcastle and Blackburn boss has lined up a move for highly-rated coach Baraclough as he begins his plans for next season.
Baraclough took his first steps into coaching when he was named first-team coach under Nigel Adkins at Scunthorpe in 2006.
The 40-year-old replaced Adkins as manager last September following his departure to Southampton, but he was dismissed by Scunthorpe in March with the club rooted to the bottom of the table.
Baraclough has gained a reputation as one of the best young coaches around and Allardyce believes he will be a valuable addition to the Hammers' set-up.