Sheppard, 27, is a former third round pick of the Buffalo Bills. He was part of the deal that sent DE Jerry Hughes to Buffalo.
However, he lasted just a year in Indianapolis before the Dolphins signed him to a contract in September of last year.
In 2014, he appeared in 14 games and recorded 24 tackles and a forced fumble for the Dolphins. Pro Football Focus has him down for playing 121 snaps last year.