Wilshere spent this season on loan at Bournemouth after not being assured of opportunities under Arsene Wenger.
The midfielder has struggled with injury over the last few years and is currently recovering from a broken leg he suffered while playing for the Cherries against Tottenham.
Parlour believes the temporary move to the South Coast was the right decision by both parties.
"The injuries have really taken its toll with Jack," he said on talkSPORT.
"I'm really pleased he went out last season on loan to Bournemouth, got some game time because he's been lacking that.
Jack Wilshere gives injury update ahead of Arsenal return Wed, May 3, 2017
Jack Wilshere has given an update on Instagram about his recovery from injury
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Jack Wilshere has given an update on his recovery from a broken leg
Jack Wilshere should leave Arsenal according to Ray Parlour
West Ham might be ideal for Jack Wilshere. I think if he wants to play on a regular basis, yes I think he should leave Arsenal
Ray Parlour on Arsenal midfielder Jack Wilshere
"I'm sure he went to see Arsene Wenger and said 'what's my future?'. Arsene Wenger's probably honest with him and said 'look, there's lots of players in front of you'.
"They've got lots of midfielders, (Santi) Cazorla was your main man in front of him, he was going to play every week. So Jack said 'look, I want to play football' and he got his opportunity to go out on loan."
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"Moving forward, it's a massive decision that Jack's got to make as well," Parlour added.
Jack Wilshere has just one year left on his Arsenal contract
"Does he want to try and fight for his position at Arsenal or does he want to go out to a club and play?
"Another club, West Ham might be ideal for Jack Wilshere. I think if he wants to play on a regular basis, yes (I think he should leave), I really do.
"I don't think he will play on a regular basis, I know he's had his injuries this season as well but he's played a lot more football.
"Again, I'll go back to West Ham, they will be looking at midfielders, a bit more quality. I would say would Jack be worth £10million?
"He's only got a year left on his contract, that's the big stumbling block."