In January 2011, Gary Johnson left his job as manager at Peterborough United, with the club several points adrift of the playoff places. On 12 January 2011, Ferguson was re-appointed as manager at Peterborough on a four-and-a-half-year contract. His first match ended up in a defeat away to league leaders Brighton & Hove Albion, but the following week, in his first game at London Road since his return, Peterborough beat Hartlepool United 4–0. Peterborough United's promotion hopes was given a boost with a 5–3 win over promotion rivals Sheffield Wednesday. A 0–5 away thumping of Oldham Athletic kept Ferguson's men within touching distance of the automatic promotion places.