The news comes after Parkinson tried to secure Dolan on a permanent move last Friday only to be beaten by the 11:00pm January transfer window deadline.
Barring any unforeseen changes to the agreement between City and Middlesbrough, the paperwork for Dolan's loan deal will be registered with The F.A and the Football League when the emergency loan transfer window re-opens this Saturday.
Subject to receiving the relevant clearances from The F.A and the League once the paperwork has been lodged, Dolan will go straight into Parkinson's match-day squad for this Saturday's home fixture with Crewe Alexandra.
Dolan will take over Ricky Ravenhill's squad number 4 once his move to the Coral Windows Stadium is finally wrapped up.
Dolan has experience of League 1 football already in his career after playing a part in Yeovil Town's push towards the Championship last season while on loan from Middlesbrough.
He has also faced City earlier this campaign when he played for Hartlepool United, again on loan, against Parkinson's men in Pools' 5-0 victory in the Johnstone's Paint Trophy back in September.
Speaking about the deal, Parkinson said: "We've been making changes to the squad recently and Matty Dolan will be another one of those when he comes in.
"I believe he will be a good addition for us, especially with Ricky (Ravenhill) going.
"Matty will add some quality into the midfield area. He has a good mentality as well. He is eager to learn and eager do really well here at Bradford City. He has real desire to his game.
Dolan has experience of League 1 football already in his career after playing a part in Yeovil Town's push towards the Championship last season while on loan from Middlesbrough.
He has also faced City earlier this campaign when he played for Hartlepool United, again on loan, against Parkinson's men in Pools' 5-0 victory in the Johnstone's Paint Trophy back in September.
Speaking about the deal, Parkinson said: "We've been making changes to the squad recently and Matty Dolan will be another one of those when he comes in.
"I believe he will be a good addition for us, especially with Ricky (Ravenhill) going.
"Matty will add some quality into the midfield area. He has a good mentality as well. He is eager to learn and eager do really well here at Bradford City. He has real desire to his game.
"He also has a terrific left foot and the ability to pick out a killer pass.
"I felt we needed fresh legs in central midfield and Matty should give us that.
"Matty's youthfulness and energy is something we wanted to add to the squad. He is up to speed after spending the first half the season at Hartlepool, and we feel the time is right to bring him in."