"Obviously he did fantastic when he was here and was player of the year when West Ham finished seventh," says Peter.
"There is no doubt he is a quality player, but at this moment in time we are quite happy with the boys we have brought in.
"But you never know, if someone gets injured all of a sudden there is an opportunity.
"There is no doubt about his quality but whether he is right for us at this moment in time remains to be seen."
Peter sees Seb's desire to return after leaving Portsmouth proves the status of West Ham and adds:
"There are not that many big clubs - so opportunities to be at one are few and far between.
"Sometimes you wish people understood that when they are doing their training and preparing.
"It is a fantastic opportunity here to play for a massive club and not many people get this chance in their lives.
"People stand on the terrace wishing for it; we have that opportunity and we say to them every day, 'guard it like a prisoner' - because you never know when your time is up."