Teachers perceived to be failing pupils will be put on probation for a year and offered support to help to bring them up to standard. If they fail to improve, they will be dismissed from their teaching posts.
Peacock said that while most Scottish teachers were performing well, a small minority were not doing enough for their pupils.
Just nine of the 52,000 primary and secondary school teachers in Scotland have been sacked for incompetence in the past five years, although councils have been given more powers to dismiss those who are underperforming.
Previously, council education committees were responsible for sacking poor teachers but the process was seen as too complex. Power passed to education directors four years ago, but it is understood that the minister believes further action is needed.
“The minister is looking at new ways to ensure that teachers who are struggling to meet required standards have their development requirements addressed in a transparent and fair way,” said a Scottish Executive spokesman.
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“Teachers would be able to ask for help to improve or be required to participate in a structured personal development programme to reach required standards.
“Only when it is clear that they have not developed sufficiently would they be assisted to find new careers.”
In February, Her Majesty’s Inspectorate of Education reported “unacceptable variation” in teaching quality across Scotland. Concerns have also been raised that some councils are performing worse than others.
Ronnie Smith, general secretary of the Educational Institute of Scotland, the country’s largest teaching union, said: “We would entirely agree with the view that we should only have practising as teachers those who are up to the job.
“But the important thing is that the judgment is made fairly and properly against a common standard of what is expected of a teacher.”