The deal can't officially be consummated until the new league year begins on March 18.
Bouye confirmed he was dealt when he spoke to ESPN's Josina Anderson. He said received calls from Jaguars general manager Dave Caldwell and Broncos executive vice president 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 has two seasons remaining on a five-year, $67.5 million deal. He is slated to make $13 million in 2020.
The 28-year-old Bouye had 65 tackles and one interception last season. He was a Pro Bowl pick for the Jaguars in 2017 when he recorded a career-best six interceptions.
Bouye has 14 interceptions and 315 tackles in 93 games (62 starts) over seven NFL seasons. He spent the first four with the Houston Texans before joining the Jaguars as a free agent prior to the 2017 campaign.
The Jaguars are expected to remain active restructuring their roster.
The Bouye deal follows a trade deadline deal with the Los Angeles Rams involving cornerback Jalen Ramsey in October 2019. Defensive end Yannick Ngakoue, expected to be given the franchise tag before the March 12 deadline, said Monday he has no interest in a long-term deal with Jacksonville.
Quarterback Nick Foles, signed to a four-year, $88 million contract in March 2019, is also reportedly on the trade block.
--Field Level Media