Parker was picked up by Richmond with pick 10 in the draft after starring in the opening rounds of the WAFL season.
Richmond and South Fremantle reached an agreement with the WAFL to allow Parker to play in the upcoming finals series before returning to the Tigers next year.
Bulldogs coach Todd Curley expressed his excitement for Parker's return for the club's premiership push.
“Matt is one of ours and was voted into the leadership group in 2021” Curley Said.
“He trained hard all summer, played with us until drafted and has remained invested in our team after his return to the AFL with the Richmond Football Club.
“Matt, our players and our coaches are all excited to have him back and involved for finals.
“We value the ongoing positive relationship built between the South Fremantle Football Club and the Richmond Football Club, and we thank them for the support of this outcome."
Parker played six games for Richmond this season, adding to his 19 with St Kilda between 2019-2020.
The 25-year-old was delisted by the Saints at the end of last season before heading back to Western Australia and joining the Bulldogs.
Parker will be available to play in South Fremantle's clash with Claremont in the Qualifying Final this Saturday.