Parkinson has been put forward for the monthly managerial gong after leading the Bantams to an impressive three wins and a draw from City's four League 1 matches in December.
Only an injury time equaliser from Scunthorpe United - the only league goal City conceded in December - denied Parkinson's men a 100% record during the final month of 2014.
City's brilliant recent form has also seen the Bantams move into the League 1 Play-Off places.
Parkinson has once before won a Manager of the Month award while in charge at the Coral Windows Stadium. He won the League 2 award during his first season at the helm at City back in December 2011.
Parkinson is up against Mark Cooper of Swindon Town, Scunthorpe boss Mark Robins and MK Dons' Karl Robinson for the honour of being named last month's top boss in League 1.
Bantams defender Rory McArdle has earned his nomination for the player's monthly award after playing his part in the three clean sheets City collected from their four League 1 games in December.
The Northern Irish international also netted his third goal for the season during December when he fired in an exquisite top corner drive from the edge of the area against Scunthorpe.
McArdle is up against Walsall striker Tom Bradshaw, Crewe Alexandra goalkeeper Ben Garratt and Swindon Town forward Andy Williams for the monthly player award.
Both the Manager of the Month and Player of the Month award winners will be announced at 6:00am on Friday (9 January 2015).