Thomas suffered a season-ending Achilles tear late last year and he had come up as a potential release candidate.
Thomas, 31, is a former first-round pick of the Broncos back in 2010. He’s entering the final of his five-year, $70 million contract that included $43.5 million guaranteed and was set to make a base salary of $14 million for the 2019 season.
The Broncos traded Thomas to the Texans for fourth- and seventh-round picks before the deadline last year.
According to OverTheCap.com, releasing Thomas will free up $14 million of available cap space while creating no dead money.
In 2018, Thomas appeared in 15 games for the Texans and Broncos and caught 59 passes for 677 yards receiving and five touchdowns.