Bouye appeared in only seven games for the Broncos in the 2020 season as he battled multiple injuries. He later missed the last four games of the year due to a six-game suspension for violations of the NFL's policy on performance-enhancing substances.
The 29-year-old Bouye will miss the first two games of the 2020 season because of the suspension.
The Broncos traded a fourth-round draft pick to the Jacksonville Jaguars last March in exchange for Bouye. In his lone season in Denver, he finished with 23 total tackles and six passes defensed.
Bouye, a Pro Bowl selection in 2017, failed to record an interception for the first time since his rookie season with the Houston Texans in 2013.
In eight NFL seasons between the Texans, Jaguars and Broncos, Bouye has notched 338 total tackles, 14 interceptions, one sack and 72 passes defensed.
The move will free up $11.7 million against the Broncos' salary cap. According to Spotrac, the team will now have about $31 million worth of salary-cap space ahead of this off-season.