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Frandsen will leave the club this summer and Allardyce felt that it was only fair to allow the player to move elsewhere as he searches for regular first team football to wind down what has been an exceptional career.
Speaking to the clubs website the Bolton boss had nothing but praise for the former Danish World Cup star.
"Per has had a fantastic career with Bolton Wanderers. He has played for us with distinction and honour. He has had eight great years at the Club. I have ultimate respect for him. I think whoever takes him on, he’ll do a fine job. He has been without doubt one of the best foreign players to play for this Club.
“Eight years is a long time in any career and Per will go down in Bolton folklore. Everyone at the Club has appreciated what he has done for us and we wish him well in his new venture. I’m sure he’ll get fixed up with another club in the close season, whether it be in England or back in his homeland in Denmark only time will tell.
“It was a difficult decision to make and there was the possibility of keeping him for another year as a squad member, but I felt that it wasn’t right. He needs to be playing first team football on a regular basis. You have to make these brave decisions as a manager and I’ve got to make sure who I replace Per with is a better player.
"We are looking at creating a much younger, fitter and talented squad. The Club can’t standstill it is now time to progress especially after the season we’ve had.”