Snapped up from Sporting Lisbon last year, Pereira put in a series of majestic displays to inspire the Baggies to promotion.
And the 24-year-old is now shining in the Premier League with the Brazilian having scored four goals in his last four games.
In total, Pereira has scored eight top flight goals this season and has also registered five assists despite the Baggies struggling at the wrong end of the division.
And after putting in yet another stunning display in the derby against Villa, Allardyce is backing the forward to have a long career at the top of the game.
"I have worked with some world class players in my time," the boss said.
"I can’t say Matheus is world class but he certainly has the potential to be a top class Premier League player if he continues developing.
"He is still very young. And I think when he is committed and when he works as hard as he did against Aston Villa, when he shows that ability – then he is certainly a big difference and a big game player for West Brom.
"He will produce more performances of that quality as he gets more and more mature.
"Obviously, I have worked with some top quality players in my time.
"But in my time at West Brom he has shown some top quality skills and if that development continues he can become a top class player because he is still very young."
With Albion likely to be relegated this season, it has been reported a host of Premier League clubs are keeping tabs on Pereira as they formulate their transfer plans for the summer.
Albion, though, will be reluctant to sell their talisman – with the Brazilian contracted to the club until the summer of 2024.