The young defender has put pen to paper on the new deal which now ties him to Posh until the summer of 2008.
"I am delighted Sean has decided to sign a new contract with the Posh," manager Barry Fry old the clubs official website.
"He has been outstanding in the games recently and I am really pleased to secure his services for the next few seasons.
"He is improving all the time and there is no doubt in my mind that he will get better and better. The beauty of him is that he still wants to listen and learn with us."