A source confirmed Jordan has agreed with Denver on a two-year, $2.5 million deal.
Jordan played for McDaniels, who was the Patriots' offensive coordinator, in New England last season. The former Oakland Raiders running back had 363 yards and four touchdowns on 80 carries last season. Jordan, 30, is expected to be a short-yardage runner for the Broncos.
The Broncos also have signed former Philadelphia running back Correll Buckhalter in free agency. They had a deal in place for Arizona free agent J.J. Arrington, but it fell through. The two sides have been talking this week about a new deal.
Jordan is the 10th unrestricted free agent Denver has signed this offseason, joining former New England teammates receiver Jabar Gaffney and long snapper Lonie Paxton in Denver. The Broncos also talked about trading for quarterback Matt Cassel last week.
NFL blogger Bill Williamson covers the AFC West for ESPN.com.