covenant of peace - better than the old legal covenant, because an unchangeable covenant of grace (Eze 34:25; Isa 55:3; Jer 32:40).
I will place them - set them in an established position; no longer unsettled as heretofore.
my sanctuary - the temple of God; spiritual in the heart of all true followers of Messiah (2Co 6:16); and, in some literal sense, in the restored Israel (Ezekiel 40:1-44:31).