Board figures from its latest annual report show one person received a salary in the range of $960,000 to $970,000 but racing sources told the Otago Daily Times Mr Allen was likely to have been offered a salary close to $1 million.
As chief executive of Mfat, Mr Allan earned between $620,000 and $629,000.
Racing board chairwoman Glenda Hughes said Mr Allen was an ''outstanding appointment''.
Mr Allen, who was controversially recruited to head the ministry in 2009 after serving as chief executive at NZ Post, attempted a number of reforms within the ministry that frustrated many long-serving diplomats.
Foreign Minister Murray McCully said under Mr Allen's leadership, the ministry had realigned its aid programme to ensure New Zealand was making a tangible difference in the region, continued to push for free and open trade and managed the campaign for a non-permanent seat on the United Nations Security Council.
An acting chief executive would be announced soon. Mr Allen said in a statement the racing board was a $2 billion business.
It also owned and operated the TAB.
He would join the board on March 2 next year.
