Parsons was reassigned to AHL Belleville on Friday.
Parsons' demotion comes as Linus Ullmark returned from a lower-body injury against the Avalanche on Thursday, eliminating the need to carry a third goaltender on the roster. Barring a new injury concern in Ottawa's goalie room, the 21-year-old Parsons figures to spend the rest of the campaign playing in the minors.