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"Based on the successful completion of the static kill procedure and a positive evaluation of the test results, I have authorised BP to cement its damaged well," Allen said.
However, he added that he made it clear to the company that cementing should not delay completion of the relief well.
BP plans to start operations on Thursday.
The Wall Street Journal quoted US President Barack Obama as saying the "long battle to stop the leak and contain the oil is finally close to coming to an end".
BP's move to inject cement into the well comes after the static kill operation allowed the company to control the well pressure using the hydrostatic pressure of the drilling mud.
It also comes as US government scientists said in a report the vast majority of the oil from the spill had evaporated or been burned, skimmed, recovered from the wellhead or dispersed.
The panel credited this to the federal government's aggressive response to the spill.
A US government official said that while the report was welcome, the government remained extremely concerned about what the oil spill meant for the health of the Gulf ecosystem and the millions of people who depended on the Gulf for their livelihoods and enjoyment.
Meanwhile, the Financial Times quoted US Bureau of Ocean Energy Management director Michael Bromwich as saying he might be able to recommend lifting of the ban on deepwater drilling if oil companies showed they had improved their safety plans.
His comments came after Chevron, ConocoPhillips, ExxonMobil and Shell on Wednesday presented him with a $US1 billion ($A1.09 billion) containment plan to respond to any future spill.
The four supermajors had announced the plan in July. It includes the construction and deployment of rapid response system that will be available to capture and contain oil in the event of a potential future underwater well blowout in the GoM.
This would be capable of operating in water depths of up to 10,000 feet and have initial capacity to contain 100,000 barrels per day with potential for expansion.
