diff --git a/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/_policyDefinitionsBicepInput.txt b/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/_policyDefinitionsBicepInput.txt
index 48319f427..f32e276fc 100644
--- a/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/_policyDefinitionsBicepInput.txt
+++ b/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/_policyDefinitionsBicepInput.txt
@@ -138,6 +138,10 @@
 	name: 'Deny-VNET-Peer-Cross-Sub'
 	libDefinition: json(loadTextContent('lib/policy_definitions/policy_definition_es_deny_vnet_peer_cross_sub.json'))
 }
+{
+	name: 'Deny-VNET-Peering-To-Non-Approved-VNETs'
+	libDefinition: json(loadTextContent('lib/policy_definitions/policy_definition_es_deny_vnet_peering_to_non_approved_vnets.json'))
+}
 {
 	name: 'Deny-VNet-Peering'
 	libDefinition: json(loadTextContent('lib/policy_definitions/policy_definition_es_deny_vnet_peering.json'))
diff --git a/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/policy_definition_es_deny_vnet_peering_to_non_approved_vnets.json b/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/policy_definition_es_deny_vnet_peering_to_non_approved_vnets.json
new file mode 100644
index 000000000..74c5ee0a2
--- /dev/null
+++ b/infra-as-code/bicep/modules/policy/definitions/lib/policy_definitions/policy_definition_es_deny_vnet_peering_to_non_approved_vnets.json
@@ -0,0 +1,82 @@
+{
+  "name": "Deny-VNET-Peering-To-Non-Approved-VNETs",
+  "type": "Microsoft.Authorization/policyDefinitions",
+  "apiVersion": "2021-06-01",
+  "scope": null,
+  "properties": {
+    "policyType": "Custom",
+    "mode": "All",
+    "displayName": "Deny vNet peering to non-approved vNets",
+    "description": "This policy denies the creation of vNet Peerings to non-approved vNets under the assigned scope.",
+    "metadata": {
+      "version": "1.0.0",
+      "category": "Network"
+    },
+    "parameters": {
+      "effect": {
+        "type": "String",
+        "metadata": {
+          "displayName": "Effect",
+          "description": "Enable or disable the execution of the policy"
+        },
+        "allowedValues": [
+          "Audit",
+          "Deny",
+          "Disabled"
+        ],
+        "defaultValue": "Deny"
+      },
+      "allowedVnets": {
+        "type": "Array",
+        "metadata": {
+          "displayName": "Allowed vNets to peer with",
+          "description": "Array of allowed vNets that can be peered with. Must be entered using their resource ID. Example: /subscriptions/{subId}/resourceGroups/{resourceGroupName}/providers/Microsoft.Network/virtualNetworks/{vnetName}"
+        },
+        "defaultValue": []
+      }
+    },
+    "policyRule": {
+      "if": {
+        "anyOf": [
+          {
+            "allOf": [
+              {
+                "field": "type",
+                "equals": "Microsoft.Network/virtualNetworks/virtualNetworkPeerings"
+              },
+              {
+                "not": {
+                  "field": "Microsoft.Network/virtualNetworks/virtualNetworkPeerings/remoteVirtualNetwork.id",
+                  "in": "[parameters('allowedVnets')]"
+                }
+              }
+            ]
+          },
+          {
+            "allOf": [
+              {
+                "field": "type",
+                "equals": "Microsoft.Network/virtualNetworks"
+              },
+              {
+                "not": {
+                  "field": "Microsoft.Network/virtualNetworks/virtualNetworkPeerings[*].remoteVirtualNetwork.id",
+                  "in": "[parameters('allowedVnets')]"
+                }
+              },
+              {
+                "not": {
+                  "field": "Microsoft.Network/virtualNetworks/virtualNetworkPeerings[*].remoteVirtualNetwork.id",
+                  "exists": false
+                }
+              }
+            ]
+          }
+        ]
+      },
+      "then": {
+        "effect": "[parameters('effect')]"
+      }
+    }
+  }
+}
\ No newline at end of file