The Packers announced the deal on Friday evening but did not disclose terms.
Peprah, who returned to Green Bay after failing to make the team in 2009, earned $630,000 in base salary last season. His one-year deal was set to expire at the end of the new league year.
Peprah took over at strong safety last season for injured rookie Morgan Burnett and played well during his 13 starts (11 regular season, two playoffs). A starter for the first time, he set career highs in every category (64 tackles, two interceptions and seven passes defensed) while providing a steadying influence they lacked with the rookie Burnett, who was lost to a torn ACL in Week 4 against Detroit.
With Peprah re-signing, it's unlikely the team will bring back veteran safety Atari Bigby. Bigby, who lost his chance to challenge for the starting job after needing ankle surgery at the start of training camp, was not given a contract tender.
Peprah, 28, was selected in the fifth round of the 2006 draft by the New York Giants.
Restricted free agent "news"
In past years, restricted free agents would be big news but not this year.
Under the old collective bargaining agreement, players with three years of experience would be restricted free agents. After the owners opted out of the CBA last year, restricted free agency moved to players with three, four and five years of experience.
The Packers have no players with expired contracts and three years of experience. On Thursday, in what really are phony-baloney transactions, the Packers reportedly gave second-round tenders to guard Daryn Colledge and kicker Mason Crosby and the original-round tender to John Kuhn. If the Packers were to lose Colledge and Crosby, they'd get a second-round pick in return. In the undrafted Kuhn's case, they'd give themselves the option to match any teams' offer.
Of course, it's almost inconceivable that the Players Association is going to sign off on restricted free agency applying to players with four and five years of experience like Colledge, Crosby and Kuhn. So, in the end, those restricted tenders mean nothing and those three will join Atari Bigby, Korey Hall, Brandon Jackson, Cullen Jenkins, James Jones, Anthony Smith, Jason Spitz and Matt Wilhelm as unrestricted free agents.
For what it's worth, the tender amounts are worth $1.96 million for Colledge (five years of experience), $1.91 for Crosby (four years) and $1.325 for Kuhn.