Reports on Wednesday suggested the Hammers were leading the race to sign Juventus forward Quagliarella, who has been tipped to leave the Serie A club this transfer window.
However, while Allardyce admits he would love to strengthen his squad further he concedes the club’s coffers are now empty.
The former Bolton boss has already been busy in the transfer market this summer, bringing in Andy Carroll, Stewart Downing, Razvan Rat and Adrian.
When quizzed about a potential deal for Quagliarella, he said: “Unless the chairman managed to find out how to find some more money for me without selling anyone I’ve got at the moment, then there are no more players coming in at this moment.
“I’ve got no money left, I’ve got the squad I have got, so that’s it. If there is a new player coming in we will need to sell some players, but I don’t envisage that happening, I am not looking at doing it because I am happy with the squad I have got at the moment.
“It is not frustrating for me, it is a fact of life. There is a new set of regulations that says you have a limit on your wages, which the owners have decided to put into place.
“I have hit my limit and that is it, we move on, get on with it.”
Brighton manager Chris Hughton believes his team fully deserved the 2-1 Premier League victory over Arsenal on Sunday, and praised their first-half display.
Barcelona manager Ernesto Valverde believes his side took an important step towards the league title by beating Atletico Madrid 1-0 on Sunday.
Manchester City boss Pep Guardiola acknowledged his team are almost within reach of the Premier League trophy after a dominant 1-0 win over Chelsea on Sunday.
Chelsea playmaker Eden Hazard reckons manager Antonio Conte didn't use him correctly in the 1-0 defeat to Manchester City on Sunday.
Newport have no fresh injury concerns for the League Two clash with Forest Green.