Parker, who is yet to start a game for the Highlanders this season, is scheduled to have surgery on his shoulder in the coming weeks and will not be sighted on the field this season.
He damaged his shoulder in an ITM Cup game for Otago last year but has continued to play with the injury, hoping it will come right.
But it has slowly been getting worse and, after he consulted a specialist, the best advice was to have surgery.
It is a blow for Otago, as Parker has been the side's main goalkicker and first five-eighth for the past three years, playing every game for Otago in that period.
His absence is not such a worry for the Highlanders, as they have Lima Sopoaga and Marty Banks to fill the No10 position.
Parker's Otago and Taieri team-mate Michael Collins is also off the field for a lengthy period of time.
Collins broke his hand in a club game earlier this month and is out for about 10 weeks.
He may be back for the later stages of the club season and should be right for Otago's ITM Cup campaign.
Meanwhile, Highlanders captain and fullback Ben Smith is mulling whether to play sevens next year and make a bid for an Olympic gold medal.
Smith confirmed yesterday he had been approached by New Zealand sevens coach Gordon Tietjens to ask if he was interested in playing next year.
Smith was still weighing up what to do.
''I love playing for the Highlanders and it would mean a fair amount of time away from them next year,'' he said.
''Plus I've got a wee girl now and committing to the sevens would mean a lot of time away from home.
''But in saying that, it is not every day you get the opportunity to try for an Olympic medal.''
Smith said he had a few weeks to make a decision and he would take some time over it.
He won a Commonwealth Games gold medal in sevens at Delhi in 2010 and said he liked the sport, as there was plenty of space on the field.
If he did play sevens, his availability to play for the Highlanders next season would be curtailed, particularly in the second half of the season.
Crusaders captain Kieran Read said on Wednesday he would skip sevens next year and concentrate on the 15-a-side game.