The Falcons rank near the bottom of the NFL in salary cap space.
Allen, a four-time team captain, was coming off his sixth season with the Falcons after being selected in the fifth round of the 2014 draft. He had two interceptions, five passes defended and 25 tackles last season. Overall, he started 76 of 77 career games and has 11 interceptions.
He recovered after a torn Achilles tendon in Week 3 ended his 2018 season. He started all 16 games in 2019, when he was Atlanta’s nominee for the Walter Payton NFL Man of the Year Award.
The team cleared $6.25 million in salary cap space by releasing Allen and another $4.5 million by cutting Bailey.
Bailey, a third-round pick in 2014 who played his first eight NFL seasons with the Chiefs, had 15 tackles and 1.5 sacks last season for the Falcons. Overall, he has 22 career sacks.
The Falcons also waived quarterback Kurt Benkert, who spent the 2020 season on the practice squad.
The Associated Press contributed to this report.