Mr Parsons, a former chairman and chief executive of Time Warner and Citi's current lead director and chair of the board's nomination and governance committee, will take up the role from February 23rd. Sir Win is stepping down ahead of his retirement later this year.
Commenting on his appointment, Mr Parsons remarked: "One of my top priorities will be to ensure the Board remains committed to strong, independent corporate governance - especially in today's challenging economic conditions."
The Financial Times reports that he has also called on the White House to develop a "bad bank" along the lines of the Resolution Trust Corporation (RTC) to take on toxic assets from the banking sector. RTC bought up assets from failing savings and loans companies during the 1980s and 1990s.
"We now need something along those lines," he said.
The new appointment follows Citigroup's announcement that it intends to split into two companies in order to protect its core banking business from potential losses linked to riskier assets.