Barnett has joined Posh on loan from League Two promotion contenders Crawley until the end of the season, when he will make his switch to London Road a permanent one.
The 26-year-old told Peterborough's official website: "I am always trying to improve my game and I'm sure I can continue that improvement here under (manager) Darren Ferguson.
"I have met him a few times and he wants to play football the right way and so do I. I have been pleased with how my season has gone so far and long may that continue here under his guidance."
Barnett, who has scored 15 goals for Crawley this season, added: "I am very pleased to be a Peterborough player and I'm very excited about the challenge ahead. I am chuffed to bits.
"I have always followed Peterborough - a few of my mates have come here to play and loved it here - and I can't wait to get started."
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