SIGNING STORY: Alnwick pens new deal
Alnwick was offered a fresh deal at the end of last season as he was about to start the last year of his existing contract.
The 29 year-old has made 92 appearances for Posh since arriving at the ABAX Stadium in July 2014.
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Hide AdHis rivals for a first-team place are veteran Mark Tyler and rookie Dion-Curtis Henry.
Posh manager Grant McCann said: “I am delighted. Ben is one of the best keepers in the league and I am pleased he has signed for the next three years.
“He has come back in great shape, he is trim, looking ready to go and I am really happy that we have been able to get this deal done,”
New contract talks are ongoing with right-back Michael Smith.
The first-team squad are currently warm-weather training in Portugal.