There are two matters to be resolved in this relationship.

 

First, the validity of divorce itself, did it happen or not? Is it final with no return but with a new contract or is it Raji`i meaning he can return you without a contract. From your words, it did not say much about that and the husband must be consulted on it with a local Imam or judge. So I advise your husband to go to an Imam or Shari`ah judge and take a fatwa on exactly what to do after he explains the details of what he said.

 

If the answer was that the divorce was final and he cannot return to you but with a new contract, then you are to make the choice to do that or decide you are done with the marriage. If there was a chance to return you then advise your parents of the ruling and consult with them of how to handle that but your decision is yours free from influence from your husband or parents. Choose what is best for you and your family.

 

Second, I am with keeping families together and avoiding divorce as much as we can. And after I read your words I can say that you still love and care for your husband but you are hurt from his actions.

 

My advice is the following. If the sin happened out of weakness, vulnerability or whatever other factors happening with your husband and you felt that he was sincere in repentance, willing to be with his family and take care of you and his child, then give him a chance.

 

But if he was just selling you sweet words, continuing in practicing Haram without repentance, carless about his liability, then I can see the point your parents are concerned about and may be it is better to step out from the relationship.

 

May Allah bring the best.