The anonymous man originally asked for $2m (£1,256,793) for alleged sexual harassment, claiming that the Grease star had attempted to touch his penis.
Travolta later announced plans to countersue, as three other men came forward claiming that Travolta had behaved inappropriately around them.
However, earlier this week the original masseur reportedly asked for the case to be dismissed, leading Travolta's lawyer to say that the star is "completely vindicated".
Allred has now taken on the original masseur - also known as John Doe No. 1 - as a client, E! News reports.
"I represent John Doe No. 1," Allred said. "Mr Doe's lawsuit was dismissed without prejudice, which means that he is still legally entitled to file a lawsuit against John Travolta if he chooses."
Allred, who has previously represented a number of high-profile people such as Tiger Woods's former mistress Rachel Uchitel, added that her client has not yet decided what to do next.
"We are in the process of conferring with him regarding the next steps, which he may wish to take," she said. "Our client and our firm has no further comment at this time."