League sources told ESPN and NFL Media that Denver will send a fourth-round draft selection in this year's NFL Draft to the Jaguars in exchange for Bouye. The deal can't be processed until the new league year begins March 18.
Bouye said he was informed of the pending trade from both Jaguars general manager Dave Caldwell and Broncos president and general manager John Elway.
"I'm on the way to get my kids, [and] I get a phone call from Caldwell, saying he appreciates everything I did for the team," Bouye told ESPN. "Then, Elway calls me, saying, 'Welcome to Denver.' Now everyone is calling. I'm just finding out. I want to thank Jacksonville."
Bouye, who went undrafted in 2013, played four seasons with the Houston Texans (2013-16) before signing with the Jaguars in March 2017. He was a key member of Jacksonville's 2017 free-agent class, which was regarded as one of the best in team history.
Bouye, 28, made the Pro Bowl and was a second-team All-Pro in 2017. He recorded 175 total tackles, eight interceptions and 34 passes defensed across three seasons (43 starts) with the Jaguars.
Bouye is scheduled to earn $13 million and count $15.5 million against the salary cap in 2020, according to Spotrac. He is expected to replace Broncos star cornerback Chris Harris Jr., who is set to become an unrestricted free agent this month.