Hamilton became surplus to requirements when Posh signed defensive midfielder Conor Coventry on loan from West Ham United earlier today.
Accrington Stanley have paid an undisclosed fee for Hamilton who played 45 times (24 as a substitute) for Posh following his arrival on a free transfer last summer. The 22 year-old started his career at Manchester United and has spent time at Rochdale, Bolton and Southend on loan.
Hamilton scored one goal for Posh in a 5-1 Papa John’s Trophy win over Portsmouth last season. He has signed a two-year contract at Accrington.