The move came one day after the Broncos signed Peyton Manning, an 11-time Pro Bowl selection released this month by the Indianapolis Colts, to a 5-year contract, apparently making Tebow expendable.
Denver will receive fourth- and sixth-round draft choices this season for Tebow and a seventh-round selection.
Mark Sanchez has started all 47 games he played for the Jets the last three seasons, suggesting Tebow would at best a second-team quarterback. New York lists three quarterbacks -- Greg McElroy and Drew Stanton in addition to Sanchez -- on its active roster.
Tebow became a sensation last season when he won the Broncos' starting position in the sixth week and led the team to a series of improbable come-from-behind victories. The team, 1-4 when he took over, finished 8-8 and qualified for the playoffs. They were beaten in the divisional playoffs by the New England Patriots.
Tebow is 167-of-353 passing for 2,383 yards and 17 touchdowns in 23 NFL games over the last two seasons. He also rushed for 887 yards and 12 touchdowns.
Swim Week Miami Beach 2014 [PHOTOS]