The former England midfielder took over from Claudio Ranieri as caretaker manager in February by which point the club's relegation was all but inevitable.
However, Parker has begun to imprint positive changes on the squad and recently led the side to a hat-trick of wins and clean sheets, convincing owner Shahid Khan that he is the right man to plot their return to the Premier League.
“I’m delighted to be appointed Head Coach of Fulham Football Club and I thank the Chairman for entrusting me with this responsibility, as well as the support and encouragement that both he and Tony Khan have provided me,” Parker said in a statement on Fulham’s official website.
“The players, staff and fans have all been fantastic with me since I took temporary charge.
“We are now all focused on ending this campaign with a positive result on Sunday against Newcastle and look forward to preparations for the new season, which have already begun.”
Chairman and owner Shahid Khan said: “Scott was brave to accept a very difficult challenge in February when appointed as our caretaker manager.
“Since that time, day by day, whether in training or on matchday, we’ve undeniably become a better football club.
“Scott will now have another challenge to face, and that is to return Fulham to the Premier League. I fully believe Scott is more than up to the task.”
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