Parker initially played in the First Division for Luton Town. He made his debut aged 17 against
Manchester United in May 1983 and played in the
FA Cup semi-final defeat to
Everton in 1985 as a 19-year-old, before moving to Second Division Hull City, managed by his former Luton captain
Brian Horton, the following season. He was a first-team regular at Hull and attracted the attention of
Brian Clough's Nottingham Forest, who bought him for £260,000 in March 1988. Initially he struggled to make his mark, not debuting for Forest until the end of April 1988. The following season he was brought into the team in late December, and instantly became a regular on the left wing, scoring his fair share of goals, as Forest's slow start to the season gave way to flowing football and excellent results. He helped Forest to finish 3rd in the League, and won a
League Cup winners' medal with victory over his former club Luton Town. Forest also won the
Full Members' Cup that season with a 4–3 win over Everton, with Parker scoring twice, the second of which involved running half the length of Wembley with the ball at his feet. Other important Cup goals that season came in the League Cup semi-final win over
Bristol City and the only goal of Forest's
FA Cup quarter-final victory over Manchester United at
Old Trafford. Parker was in the Forest team at the
Hillsborough disaster and also in the rescheduled semi-final at Old Trafford, which they lost to
Liverpool. Forest sold
England midfielder
Neil Webb to Manchester United in the summer of 1989, and despite buying
Ireland international
John Sheridan, Parker was moved into his favoured central midfield position for the next season and Sheridan was quickly sold on. He received a second League Cup winners' medal as Forest retained the trophy with victory over
Oldham Athletic in 1990, a team that included Parker's former Luton and Hull teammate
Frankie Bunn. After two losing FA Cup semi-finals with Forest, Parker finally reached the final with Forest in
1991, where they faced
Tottenham Hotspur Forest eventually lost the game 2–1 after extra time via a
Des Walker own goal. In November 1991, Parker left Forest to join Aston Villa for £650,000. Villa won the League Cup in 1994 and Parker made three appearances during their cup run, ==International career==