Parker was appointed as the caretaker manager of Fulham in February 2019, succeeding Italian coach Claudio Ranieri, who was dismissed when the Cottagers languished second from bottom on the Premier league table. Fulham were eventually relegated from the Premier League at the end of the 2018/2019 season.
Parker led Fulham straight back to Premier League promotion in his first full season as the West Londoners defeated city rivals Brentford in the Sky Bet Championship play-off final.
The English manager has been rewarded with a new contract following Fulham’s resurgence to the topflight.
"I'm delighted to have signed a new deal which shows mutual faith and commitment, on both my side and the Club's," Parker told Fulham's website.
"I'm pleased with the hard work we have all carried out behind the scenes which resulted in achieving our objective of promotion to the Premier League last month. This has been a huge effort involving many people, and has continued in our preparations for the new season.
"Signing a new deal provides stability and an opportunity to keep on developing the team. There is still a lot of hard work ahead of us, and we'll always be striving to improve and progress every day."
Fulham owner Shahid Khan added: "We believed in Scott Parker when we signed him as a player in 2013, and we believed in him as our Caretaker Manager at the end of our most recent season in the Premier League.
"Our belief and confidence in Scott is stronger than ever today and is evident in this new three-year contract, which is fully deserved, and I'm thoroughly honoured to offer as we return next week to top-flight football."
Fulham kickoff their Premier League campaign with a game against London rivals Arsenal at the Craven Cottage.
