An optical return-to-zero (RZ) signal is generated from non-return-to-zero (NRZ) signal by means of two-stage optical modulation technique, and then is launched into the fiber parametric oscillator under low power pump for parametric wavelength conversion and clock extraction. Experiments show that, for 10 Gbit/s clock extraction with 1.6 nm-interval wavelength conversion, the optimized input pump power is in the range of 8~14 dBm, the jitter suppression function can be implemented for the input signal with the amplitude and phase jitters of less than 2.28 mV and 3.5 ps, and the slopes of the corresponding input/output transfer curves are about 0.29 and 0.16, respectively.