Peake spent his final season at Luton helping coach the reserves before he was asked to return to Coventry City by Gordon Strachan in February 1998. He coached the under-19 side for a season before stepping up to reserve team coach. Coventry sacked their manager Roland Nilsson in April 2002 and appointed Peake, alongside Steve Ogrizovic, as caretaker managers for the club's final game of the season. The club would lose the fixture, away at Burnley on 21 April 2002, 1–0. Following the appointment of Gary McAllister as manager, Peake moved to become Coventry's chief scout. In March 2003 he, alongside Coventry's assistant academy director George Mackie, was made redundant.
He helped his former Coventry team-mate Micky Adams with some scouting work at Leicester City, agreeing a full-time role with their academy in the summer of 2003. Peake was placed in charge of the Under-17 side and he still remains at the club as assistant academy director alongside academy director Jon Rudkin. Peake now also takes charge of the Under-18 side after Steve Beaglehole was moved up to take charge of the new Under-21 development squad.