The 28-year-old defender agreed to a deal running until 30 June 2015 and will join his new team-mates for training in January.
"I'm looking forward to playing at FC Augsburg and in the Bundesliga," said Parkhurst. "I'd like to do my bit so that we can achieve our aim of staying up in the second half of the season. I watched the game against Bayern Munich at the SGL arena and despite the defeat I was impressed with the fantastic atmosphere. That's why I can hardly wait to get out there and play myself."
"Michael Parkhurst is an experienced defender who played primarily at right-back for Nordsjaelland," said sporting director Jürgen Rollmann. "It's well known that we've had problems in that position. However, Parkhurst can also play on the left or in the centre of defence and we're sure he'll help our team."