Peupion, 20, has been with the Seagulls since the summer of 2020 and has impressed in the under-21s.
The former Sydney FC Academy man made his debut for the Brighton first team last season when Roberto De Zerbi introduced him as a second half substitute in the 4-1 loss at Newcastle United last May.
Peupion also featured last August as Brighton beat Forest Green Rovers 3-0 in the Carabao Cup.
A loan to Cheltenham, as reported by www.gloucestershirelive.co.uk will be a chance for the Australian under-23 international to get some game time under his belt in League One. Cheltenham Town have had a tough start to their League One campaign and Wade Elliott’s men are bottom of the league with just one point from heir opening five fixtures. Peupion is contracted with Brighton until June 2024.