The lock has extended his contract for another year as he looks to add to his 16 games for the team.
Parkinson began with the side in 2018 and while injury has limited his time on the park, he has been a strong force when fit and at his best.
He has not been sighted on the field this year due to ankle injury, although is available to make his return on Friday against the Hurricanes.
Head coach Tony Brown was pleased with the re-signing.
“Pari Pari has so much potential within him, I feel like he is ready to fire now and over the next few seasons, if he can stay injury free, he could really dominate his position.
"His big, athletic and an aggressive ball carrier so he has all he needs to be a world class player.”
Parkinson was keen to look forward rather than back, but was happy to be with the Highlanders.
“It’s been a frustrating few years in a way, with injuries etc. but I am hopeful with the body now in good shape that I can get some good performances under my belt and push on from here," he said.
“I had options to move on but in the end I believe I will get the best out of myself by staying with the Highlanders. There is a lot I want to achieve over the next few seasons and this is the right team and place to do it from”.
