Bailey, who has not practiced since injuring his left foot in an Aug. 17 preseason loss in Seattle, was formally ruled out on Friday.
"No setback," Broncos coach John Fox said after practice. "He's on schedule, he's making great progress, and he's being watched over by our medical staff, and he's getting closer."
Bailey said last week he felt he was "very close" to being ready to play, and Friday he jogged off the field after taking part in the team stretch at the beginning of practice. Bailey then worked with the strength coaches.
Dominique Rodgers-Cromartie is expected to start in Bailey's left cornerback spot. Rodgers-Cromartie started there for the season opener against the Ravens and was targeted just once by Baltimore quarterback Joe Flacco.