"It will help make the environment really competitive, which is just what we need."
While excited about linking up with the Warriors and working alongside McFadden, Allwood said he was indebted to Canberra.
"I'm grateful for the opportunity the Raiders have given me to play at the club from a junior level and to make my NRL debut with them is something I'll never forget," he said.
"Although I've signed a new deal with the Warriors, I'm still committed to playing out the season for the Raiders and hopefully finishing my time with the club on a high.
"I'm looking forward to working with Andrew McFadden at the Warriors and the chance to continue to build my NRL career."
Born in Scone in New South Wales, Allwood has represented New South Wales at both under-17 and under-18 levels.
Allwood graduated to Canberra's fulltime NRL squad last season after making 32 NYC appearances in 2011 and 2012.
Last year he played for the Raiders' feeder club the Mounties in the New South Wales Cup.