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Newspaper speculation had suggested Allardyce did not regard injury-prone Dyer as part of his plans on Tyneside and it was thought Spurs boss Martin Jol was ready to pounce.
But Allardyce has refuted those claims and insists he is looking forward to working with the "versatile" England international.
"Anyone saying that I want Kieron to leave is talking utter rubbish," Allardyce told The People.
"He is one of the successes of last year in that he appears to have overcome his major injury problems.
"I have spoken to Kieron. He is such a versatile player that he can get used in a number of positions and that can be difficult for him sometimes.
"But I will take the brunt of it if he has to be moved around. We want to grow together."
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