We introduce the Large Sky Area Multi-Object Fiber Spectroscopic Telescope (LAMOST) stellar parameter pipeline at Peking University – lsp3, developed and implemented for the determinations of radial velocity V_r and stellar atmospheric parameters (effective temperature T_eff, surface gravity log g, metallicity [Fe/H]) for the LAMOST Spectroscopic Survey of the Galactic Anticentre (LSS-GAC). We describe the algorithms of lsp3 and examine the accuracy of parameters yielded by it. The precision and accuracy of parameters yielded are investigated by comparing results of multi-epoch observations and of candidate members of open and globular clusters, with photometric calibration, as well as with independent determinations available from a number of external data bases, including the PASTEL archive, the APOGEE, SDSS and RAVE surveys, as well as those released in the LAMOST DR1. The uncertainties of lsp3 parameters are characterized and quantified as a function of the spectral signal-to-noise ratio (SNR) and stellar atmospheric parameters. We conclude that the current implementation of lsp3 has achieved an accuracy of 5.0 km s⁻¹, 150 K, 0.25 dex, 0.15 dex for the radial velocity, effective temperature, surface gravity and metallicity, respectively, for LSS-GAC spectra of FGK stars of SNRs per pixel higher than 10. The lsp3 has been applied to over a million LSS-GAC spectra collected hitherto. Stellar parameters yielded by the lsp3 will be released to the general public following the data policy of LAMOST, together with estimates of the interstellar extinction E(B − V) and stellar distances, deduced by combining spectroscopic and multiband photometric measurements using a variety of techniques.