The Bantams' interest in Dolan was revealed this Saturday morning following some inaccurate reports that suggested City had completed a deal to bring the 20-year-old to the Coral Windows Stadium.
With City staying overnight in a Telford hotel on Friday ahead of the Wolves fixture, Parkinson had spent the final hours of the January transfer window glued to his phone in an attempt to bring Dolan to the club on a permanent deal.
Unfortunately time ran out on City and the move could not be finalised before the 11:00pm deadline.
With the emergency loan window set to re-open at the back end of next week, however, Parkinson says City will look to move for Dolan again - this time on loan.
Parkinson revealed: "Matty will still hopefully be joining us.
"The deal had virtually been agreed on Friday but unfortunately both clubs couldn't come to an agreement over a sell-on fee. This delayed the process and meant the paperwork couldn't be done in time.
"It is frustrating because I didn't want him to be a loan player, I wanted him to be a permanent signing because you can only have a certain number of loans in a match-day eighteen (starting eleven and bench).
"That does affect things but we can still take him on loan next week."