Parkin, who left Spotland in November 2001 to join First Division Barnsley, will take over the managerial role left by Alan Buckley who was sacked earlier this week.
The former Dale boss had a 12-month spell at Barnsley before being sacked by administrators and since that time has been working under Billy Dearden at Notts County.
A string of poor results have seen Rochdale slip to 20th in the Third Division, just five points above the relegation zone.
Meanwhile, director Brian Kilpatrick has tendered his resignation from the club due to an increase in personal commitments. Tweet
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Welcome back Steve. Buckley and simpson were inept, the side that is left is absolutley dire and would struggle in the conference. Buckley took a holiday and as a result we lost Flitcroft and others in pre season. Hopefully Parkin can bring back the success we had in his first season.
i must say i am not sure about this one when steve left i was both disapointed and angry it may take a while for myself and other dale fans to except his return but i am confident he can take us forward given time