Parker stood in 10 Test matches and 65 one-day internationals over an international career that began in 1993 with his debut Test against New Zealand in Brisbane.
Having also stood in several Sheffield Shield and Pura Cup finals, Parker retires as one of Australian cricket's longest-serving officials, having made his first-class debut in 1986-87.
Acting Cricket Australia Chief Executive Officer Michael Brown praised Parker's contribution to the game.
''Peter has had an outstanding career at an international and domestic cricket level over 15 years and represented Cricket Australia, his craft and himself with distinction.'' Brown said.
''He should feel proud of the contribution he has made to the umpiring fraternity and Australian cricket as a whole. His legacy will continue as we strive to develop umpires with the ability to perform in the international arena,'' he concluded.
Parker, who will take on a full-time position with his long term employer, said he was grateful for the many opportunities umpiring had provided him.
''I would like to thank everyone involved over the years for their help and support in a sport that now has now 25-30 years of my life,'' Parker said.
''I'll miss the camaraderie with the other umpires and also the players, but most of all I'll miss the challenge. I have managed to umpire the 10 Tests and 65 ODI's, so, I walk away from a career proud of what I've done,'' he added.