Dividing a pre-defined brain region into several heterogenous subregions is crucial for understanding its functional segregation and integration. Due to the high dimensionality of brain functional features, clustering is often postponed until dimensionality reduction in traditional parcellation frameworks occurs. However, under such stepwise parcellation, it is very easy to fall into the dilemma of local optimum since dimensionality reduction could not take into account the requirement of clustering. In this study, we developed a new parcellation framework based on the discriminative embedded clustering (DEC), combining subspace learning and clustering in a common procedure with alternative minimization adopted to approach global optimum. We tested the proposed framework in functional connectivity-based parcellation of the hippocampus. The hippocampus was parcellated into three spatial coherent subregions along the anteroventral–posterodorsal axis; the three subregions exhibited distinct functional connectivity changes in taxi drivers relative to non-driver controls. Moreover, compared with traditional stepwise methods, the proposed DEC-based framework demonstrated higher parcellation consistency across different scans within individuals. The study proposed a new brain parcellation framework with joint dimensionality reduction and clustering; the findings might shed new light on the functional plasticity of hippocampal subregions related to long-term navigation experience.