The former Bourgoin half-back joined Clermont Auvergne at the start of the 2009/10 season and has scored ten points with the boot in the opening two rounds of this year's Heineken Cup.
Parra who will need to continue his early season form when his side face former European champions Leinster in back-to-back games in December, is delighted to have signed the extension.
"I want to re-live what I've experienced in 2010 and the club is looking to the future, with a big stadium and still loads of fans," he said.
"I don't think Clermont has any reason to envy the other French clubs, which is why I wanted to stay here and extend my contract.
"Even though I found it a bit difficult to adapt at the beginning, I now feel very good at Clermont and in the team."