- Denver also released long snapper Aaron Brewer.
Daniels, 33, was in the second year of his three-year, $12.25 million contract that included a $3 million signing bonus. He was set to make a base salary of $3 million for the 2016 season.
According to OverTheCap.com, releasing will free up $2.5 million in available cap space while creating $2 million in dead money.
In 2015, Daniels appeared in all 16 games for the Broncos and recorded 46 receptions for 517 yards receiving and three touchdowns.