Rooney, 30, has led his country for the past two years, but after taking over from Roy Hodgson following Euro 2016 Allardyce initially refused to confirm he would keep the armband.
Allardyce also declined to name a skipper in his first squad announcement on Sunday night, adding a minor element of intrigue, but the Manchester United forward always looked firm favourite.
'Wayne has been an excellent captain for England and the manner in which he has fulfilled the role made it an easy decision for me to ask him to continue,' said Allardyce, who informed the players of his decision after the start of a week-long get-together at St George's Park on Monday.
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