This opens up a 21-day window for them to practice with the team before they have to be added to the active roster.
Kansas City also signed TE Matt Bushman to the practice squad.
Saunders, 25, was the No. 84 overall pick by the Chiefs out of Western Illinois in 2019. He is in the third year of his four-year, $3,673,180 rookie contract that included a $915,180 signing bonus.
In 2021, Saunders has appeared in seven games for the Chiefs and recorded eight total tackles.