Parker finished the 2006–07 season as the club's second-top scorer with sixteen goals in all competitions. He failed to secure a regular place in the starting line-up in the 2007–08 season and in the January 2008 transfer window, he rejected a move to Barnsley. His last appearance for the club came on 15 March 2008 against local rivals Preston North End and on 7 May, he was released by Blackpool. He had not featured in the first team during the final two months of the 2007–08 season and had made just 17 appearances for the club throughout the season, failing to score a goal. "The last three months have been a bit of a nightmare," he explained at the time. "I've had four great years and last season was fantastic, especially at Wembley, but I'll be moving on in the summer." On 15 May 2008, Parker stated that he was not released by Blackpool, that he had turned down the offer of a new contract earlier in the season and had then allowed his existing deal to run out. He was linked with moves to Huddersfield Town, Swansea City, Scottish Premier League club Aberdeen and Southampton, with Parker saying, "There are five or six clubs who are interested. It depends on a few issues but I should know more in the next couple of weeks."