The move comes as investigators are scrutinizing how deputies responded to the shooting at Marjory Stoneman Douglas High School that left 17 people dead.
Israel said he made a decision to suspend Peterson without pay pending an investigation, but Peterson chose to resign.
During a Wednesday press conference, Israel said he'll be arming the trained school resource deputies.
He also said the sheriff's office was reviewing whether the first officers on the scene rushed into the school, as they are trained to do when an active shooter is on the rampage. When asked what he is seen doing on the video, Israel replied: "Nothing".
Two other deputies were placed on restricted duty while the sheriff's office investigates whether they "could've" or "should've" done more while dealing with suspect, 19-year-old Nikolas Cruz, amid the 23 calls they received involving Cruz or his brother since 2008, Israel said.
"They could have done more, they should have done more", Israel said.
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"What I saw was a deputy arrive at the West side of building 12, take up a position and he never went in", said Sheriff Israel. "Addressed the killer. Killed the killer". I mean these families lost their children. It wasn't known which school was the subject of the reported threat.
The shooting at Stoneman Douglas High School has reignited national conversation about gun control and mental health reform, as well as the legislative inaction of officials who have the power to change those laws.
A deputy contacted the caller, who was located in MA, over the phone.
The Broward Sheriff says there are special security measure in place.
He said: 'If we are going to infringe on the Second Amendment, it has to be a policy that will work'.
Scot Peterson instead remained outside the building for four minutes, according to the Broward County sheriff. He is being held in a Broward County jail.