Since making his debut with Tottenham in August 2017, Peters, 21, played nine matches and scored one goal, reports Efe.
"It makes me so proud because it means I've done well, to the extent that the club feels they can reward me with a new contract," the club's website cited Peters as saying.
Peters' playing chances at the club were affected by the signing of Serge Aurier from Paris Saint Germain, as well as being the second choice behind Kieran Trippier, who played 35 matches in the 2017/2018 season.
"I feel I've improved massively with the help of the other players and the manager. Being in that senior working environment every day can only help you to get better and I think when I've been given my opportunities, I've been able to show my improvement and help the team to win games," Peters added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)