A league source told ESPN's John Keim the deal is worth $9 million, with $1.5 million in incentives.
Bruton, a fourth-round pick in the 2009 draft, had been one of the longest-tenured Broncos. He was the team's special teams captain in each of the past three seasons, including two Broncos teams that advanced to the Super Bowl.
Denver Defensive coordinator Wade Phillips also found a place in the defense for Bruton in 2015, as Bruton's 482 snaps on defense -- 43.98 percent of the defense's total -- were his most in any of the past seven seasons.
Bruton closed out the 2015 season on injured reserve after suffering a fractured lower leg in the Broncos' Dec. 20 loss in Pittsburgh. Bruton played the majority of the game with the fracture.
Bruton had told team officials, including coach Gary Kubiak, given that he would turn 29 years old just before training camp opens, that his expectation was to have an opportunity to start to go with the contract that would come with a starting job.
Bruton is active in his off-the-field work in the Denver area, including his foundation, Bruton's Books, which encourages school children to read more by giving them more access to books.
ESPN Broncos reporter Jeff Legwold contributed to this report.