"He has always given 100% in his performances and I am sure the supporters recognise his achievements."
Keates joined Posh on a free transfer from Walsall in 2007 and scored 11 goals in 96 appearances for the club, including netting in the 3-1 defeat at Newcastle in October which proved to be his final game.
Meanwhile, defender Tommy Williams is back at London Road after his loan spell at QPR came to an end.
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