Ferry was approached by the Fife outfit's new manager Kevin Thomson - a former team-mate of Ferry's at Dundee.
But despite an attractive offer to move Ferry is staying put at Balmoor.
Blue Toon boss Jim McInally is already on record praising Ferry's coaching skills - and for his part Ferry says McInally is assembling the best squad he has seen at Peterhead.
He told the club website: "I have just signed on again at Peterhead and I wanted to be loyal to the manager and the club. I was a team-mate of Kevin’s at Dundee and have a lot of respect for him both as a person and a coach.”
“It was a good offer to join Kelty, so it was a tough decision but I am enjoying my role at Peterhead, where I already do a lot of the coaching.”
“Jim McInally always said he would never stand in the way if an opportunity came up and he gave me permission to speak to Kelty.
“I know Kevin will go on to be a very good manager; however I think the manager at Peterhead has built the best squad in my time at the club and that is something I wanted to continue being involved with.”
Thomson was named manager of Kelty - who recently beat Brechin to earn promotion to the SPFL from the Lowland League - after Barry Ferguson quit to join Alloa.