AJ McCarron's wife had a baby on Wednesday, so the Raiders need another quarterback if McCarron can't be at Monday night's game against the Denver Broncos. In that case, Peterman would be promoted to the active roster.
Peterman, 24, was released by the Bills last month after throwing 12 interceptions in eight games over two seasons for Buffalo.
Peterman was the Bills' opening day starter this season after winning a training camp competition with McCarron and rookie first-round pick Josh Allen. Bills coach Sean McDermott expressed optimism in Peterman after he completed 80 percent of his passes in the preseason for 3 touchdowns and 1 interception.
In a Week 1 trip to Baltimore, Peterman completed 5 of 18 passes for 24 yards and 2 interceptions before McDermott benched him for Allen in the third quarter of what became a 47-3 loss to the Ravens.
On 130 career regular-season pass attempts, Peterman, a 2017 fifth-round draft pick of the Bills, has thrown 3 touchdowns and 12 interceptions. He also threw an interception on one of his three pass attempts in last season's AFC wild-card playoff loss.
The move means Peterman again will be a teammate of McCarron, who was traded to the Raiders before the season. McCarron has been starter Derek Carr's backup this season.
ESPN's Mike Rodak contributed to this report.