He told BBC Radio Cambridgeshire: "I've been here three months, know all the lads and love it, so I'm excited."
Little made nine starts after joining Posh on loan in March while Jim Gannon was at the helm.
He did enough to impress new boss Gary Johnson and said he is looking forward to playing a big part in the club's League One promotion push.
"I've always been a right back and, although I have played in the centre, Gary sees me as playing on the right," he said.
Little is a product of the Wolves academy but made fewer than 30 appearances in four seasons at Molineux.
He said it was an easy decision to come to Posh, despite his emotional attachment to Wolverhampton.
"Professionally, it's the right move but, emotionally, I've been at Wolves since I was 12. I'm a Wolves fan and I'd always wanted to be playing in the Premier League with Wolves," he said.
Source: BBC Sport
Source: BBC Sport