Picked up by the Crows in last year's Mid-Season Rookie Draft with the fourth pick, Parnell used the the second half of 2021 in the SANFL to develop his game as a hard-running defender.
The club have rewarded Parnell's determination and development, tying the Murray Bushrangers product to the club for at least the next couple of seasons.
Speaking to afc.com.au, the 20-year-old expressed his delight with re-signing at the Crows and aims to repay the faith shown by the club during the early part of his career.
"I couldn't be happier to sign on and continue my time with the Club," Parnell said.
"They showed faith in me in the mid-season draft last year and from the first day I walked in the door I've felt welcomed and supported by my teammates and coaches.
"It's been great working closely with our development coaches to improve my game and I've loved my time with the SANFL and AFL teams and am excited about the future."
Adelaide General Manager List Management and Strategy Justin Reid praised Parnell for his work throughout his short time at the club as the club eye Parnell as a key part of their future.
"Paddy deserves a lot of credit for the work he's put in behind the scenes to put himself in a position where he is not only pushing for AFL selection but performing at AFL level," Reid said.
"The attributes our recruiting and list management team indentified in him as a junior have been on show in the SANFL and in recent weeks at the highest level as well.
"He is a reliable defender with a great kick and makes good decisions and we look forward to watching him continue to develop in coming years."
In his four games this year, Parnell has averaged 12.8 disposals, two tackles and 3.8 marks per game as he looks set to continue adding to his career game tally in the latter stages of the 2022 season.