The team has the same decision to make on edge rusher Von Miller‘s contract by tomorrow.
Jackson had a $1.5 million option guarantee on his $10 million salary for this season. The move creates $7.118 million in cap space.
Jackson, who turns 33 next month, spent the past two seasons in Denver. He started all 16 games last season, making 89 tackles, an interception, four pass breakups and two fumble recoveries.
He entered the NFL as a first-round choice of the Texans in 2010 and played his first nine seasons in Houston.