The 40-year-old head coach believes that he has joined a club that is the perfect fit for his talents and playstyle.
Parker brings Matt Wells as his assistant, Rob Burch as goalkeeping coach and Alastair Harris as his head of performance.
Bournemouth will be aiming to secure promotion to the Premier League next season.
"I believe this is the perfect fit for both parties," Parker told afcbTV.
"I'm familiar with Bournemouth because of my relationship with Harry Arter. It's a football club I know well from watching him over the years.
"The ethos, the reputation, the journey and the challenge here is something that's very exciting for me and my staff.
"We want to build a team the fans can be proud of and one they feel represents them. We can't wait to get started."
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