Following a 13-6 defeat Parks, who holds Scotland's all time cap record in the ten jersey, has taken the decision to hang up his boots on the test stage just ahead of Sunday's clash with Wales at the Millennium Stadium.
He said: "I was thinking about it but the first game of the Six Nations was against England, the auld enemy, Jacko (Ruaridh Jackson) was injured and being able to play against England was huge for me as there was a sense of unfinished business.
"After talking it over with my family, girlfriend and close friends I've come to the decision that now is the right time to retire from the international game.
"I've no regrets at what has been an amazing career for me. I've got my favourite moments for Scotland - uppermost being the 2007 Rugby World Cup.
"There are a lot of people within Scottish rugby who have been good to me. I would like to thank Matt Williams, Frank Hadden, Andy Robinson and all the various assistant coaches over the years, alongside the medical, fitness, kit, administrative and media staff who have helped me.
"This is not the end of me as a rugby player. My international career is over but I want to keep playing club rugby," added Parks, who is contracted to the Cardiff Blues until the end of the season.
Parks made his debut off the bench against Wales in the 2004 Six Nations clash in Cardiff. He came back from the international wilderness in 2010 to win five man-of-the-match awards against Wales, Italy, Ireland, South Africa and Argentina.
He also played in all four of Scotland's matches at the 2011 World Cup in New Zealand.
Current Scotland head coach Andy Robinson said: "I have really enjoyed working with Dan. He wasn't in my first Scotland squads but through his own determination, hard work, skill and competitive spirit he forced his way back into selection."
Meanwhile long-time half-back partner Mike Blair said: "Dan is a hugely popular and respected member of the squad and his contribution to some of Scotland's most famous victories cannot be under-estimated.
"His humour, talent and energy will certainly be missed around the Scotland camp."
The front runners in inherit Parks' number fly-half jersey for the clash with Wales are Glasgow pair Ruaridh Jackson and Duncan Weir or Greig Laidlaw who impressed after replacing Parks at Murrayfield on Saturday.