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Twelve months ago, the right-winger was forced on to the transfer market but this was to give the former Coventry City and Birmingham City star a warning and to fight for a first team place.
Neil Warnock told www.sufc.co.uk: "I'm absolutely delighted Peter has re-signed.
"He was inundated with offers but has taken a considerable cut in wages because he was desperate to continue playing for this club and the fans who have taken him to their hearts in the last year or so."