Posh were last week given permission to hold transfer talks with the former Sheffield United right-back but he has rejected the offer of a move to London Road.
"I listened to what Peterborough had to say but it didn't seem right at the moment," Francis told the official Shrimpers website.
"I think staying at Southend is right for me because I'm enjoying my football and I'm very settled living in this area."
"It's obviously nice that a club from a higher level have seen you play and want to sign you and, as a player, you do want to play as high as you can. But I have no interest in leaving Southend."