The Herald on Sunday this week revealed Hurrell was on the outer at the Warriors and likely to play the rest of the season in the second-tier Intrust Super Premiership unless he leaves the club.
However, McFadden insisted his decision was serving the team's best interests and denied he is done with the 24-year-old Tongan international.
Having made just five NRL appearances since arriving at the Warriors last season, Allwood lacks the game-breaking reputation Hurrell has earned by scoring 41 tries in 71 games since 2012, but McFadden stands by his policy of rewarding in-form players.
"No, there's nothing [personal against Hurrell]," he said. "I don't want this to turn into 'The Konrad Show'.
"Look, we discussed him but we decided this was best for the team. I've made the decision for the team's best interest and that's what we'll go with.
"He's [Allwood] the third best form centre at the club. He has been given his selection through his form and that will change from time to time. "So as long as they hold their form they get the job."
Meanwhile, winger Manu Vatuvei continues to work his way through personal issues amid the fallout to his involvement in the recent prescription pills and energy drinks scandal.
McFadden acknowledged Vatuvei's mental well-being had been the subject of great concern as he overcomes the toll of recent events and deals with other private matters.
"He is close [to making a return]. He's had some other stuff come up more recently which is probably delayed that comeback but he's very close. We've got the bye now so we're just going to manage him over the next couple of weeks.
"It was certainly a concern. There was obviously some reasons around that, both personal and then some things that have happened, and it all just got a bit too much so at the moment we've just got to look after Manu and he's tracking along well."
