Michael Chopra is keen to return to the Indian Super League, which will kick off on October 3 organisers have announced.
Mikel Arteta feels Arsenal have the financial strength to be able to challenge for the Premier League title next season.
The 29-year-old defensive midfielder, whose move has the option to become permanent if he impresses at the Stadio Ennio Tardini, spent last season on loan at Inter Milan from Napoli, who he joined from Danubio in 2007.
Parma said in a statement on their website: "Parma announce that it has acquired midfielder Walter Gargano from Napoli on a temporary basis with the option to purchase outright.
"The Uruguayan will wear the number five shirt. He will be officially presented after linking up with his national team for the (World Cup qualifying) matches against Peru and Colombia on September 6 and 10."