Peters was set to become an unrestricted free agent on Monday. He suffered a torn Achilles late last season and elected to stay put for a year and test the market next season.
Peters, 6-foot-3 and 305 pounds, appeared primed to help put some teeth back into the run defense over last offseason.
In 2013, Peters started all 15 games and had 48 tackles (35 solo) with a career-high five sacks and two passes defensed. Additionally, Peters was named the Atlanta Falcons 2011 Walter Payton Man of the Year.
He was clearly moving around much better after recovering from foot surgery that slowed him in 2012.
Peters appeared ready to fulfill the promise that he flashed in the 2010 and 2011 seasons.
As a rookie, Peters, a third-round draft pick, started six of 15 games and had 40 tackles, a sack and a pass breakup.
He moved into the starting lineup full time in 2011 and made 33 tackles, had three sacks, two pass breakups, a fumble recovery and a touchdown in 15 starts.
After starting the 2012 season on the physically-unable-to-perform list, he struggled. Peters started seven of nine games and finished with 21 tackles, a forced fumble and one pass breakup. He also registered a sack against San Francisco in the NFC Championship.
Peters was drafted in the third-round (83rd overall) in the 2010 NFL draft.
He has played in 56 career games, including 53 starts in four seasons in Atlanta. Peters has recorded 140 tackles (107 solo) with nine sacks, one interception, one forced fumble, one fumble recovery, and five passes defensed.