Chisora faces the New Zealander in Manchester next Saturday having lost to Oleksandr Usyk in his last fight in October 2020.
The British heavyweight stands between Parker and another shot at a world title, having recovered from his consecutive defeats to Anthony Joshua and Dillian Whyte in 2018.
Chisora revived his career with an eighth-round knockout of Carlos Takam that same year, but does not have long left in the sport at the age of 37.
And Higgins went as far to say that Parker could end Chisora’s career with a heavy victory at the Manchester Arena on 1 May.
“On his day, he [Chisora] can show up and knock someone out, like he did against Carlos Takam and so we’ve always got to be wary of that,” Higgins told Sky Sports.
“But provided that Joseph Parker does not make a silly mistake, and executes his game-plan, then I see him retiring Derek Chisora.
“This is a fight where if Joseph wins, he’s got a genuine second world title shot, right in front of him. Eddie Hearn has confirmed that. Maybe against Usyk, whoever, it doesn’t matter.
“The winner will be on a world title shot, I’d say within a year, and the loser will be on the scrapheap. If it’s Derek Chisora, I’d say he’ll probably retire.
“If it’s Joseph Parker, he’s got to ask some really hard questions, whether he is in the top echelon and should continue his career.”
Parker has won four consecutive bouts since he was defeated by Whyte at London’s O2 Arena in July 2018, but is yet to face an established title contender since.
Chisora’s manager and former British heavyweight champion David Haye added: “I hope that Parker wants to stand and have a punch-up with Derek. If he tries to outbox him, it could be pretty ugly, so I’m hoping he wants to stand there.
“I’m hoping he wants to make a statement to the heavyweights out there, ‘I’m going to go out there and take Derek Chisora out’. If he does that, we’ve got ourselves a beautiful showdown.”