He joined from Yeovil Town in June 2009 and made 50 appearances in his debut season, scooping the players' player of the season award.
He told the club's official website: "I see the ambition and where the club wants to go, that made the decision easy for me."
He continued: "I settled in really quickly and had a good season, so I'm looking to build on that.
"The play-off semi-final defeat hurt last season and none of us want to go through that again.
There's no doubt about it - Lee could play at a higher level
Lee Clark
"We're looking to go one step better and get automatic promotion this year and I can't see a reason why we can't.
"The squad is in place, so it's up to us to crack on - starting on Saturday."
Peltier was also deployed at left-back last season, and manager Lee Clark was delighted to secure his services on a longer deal.
"I knew when I was letting Andy Holdsworth go that I would have to bring in a quality replacement and I think everyone would agree that's been the case with Lee," he said.
"This new contract shows how highly we rate Lee, as well as how much he enjoys being at Huddersfield Town.
"There's no doubt about it - Lee could play at a higher level. The club wants to get there and I want to see him develop through the leagues with us."
Source: BBC Sport
Source: BBC Sport