Orton emerged from the pre-season with the Broncos' starting job but was replaced by Tebow after the team struggled to a 1-4 record.
Orton went 91-of-155 passing for 979 yards, eight touchdowns and seven pick-offs before being benched in favor of Tebow, who has spurred a 4-1 Broncos run since the switch.
"I would like to thank Kyle for all his work with the Denver Broncos," said John Elway, the Broncos' executive vice president of football operations. "In the three years that he's been here, he's been an absolute pro. We thought it was best for the Broncos at this time as well as for Kyle to catch on with a different team."
Tebow has rallied the Broncos to two comeback victories during a three-game winning streak.