McBean filed a lawsuit against the league in which he accuses the NFL of mishandling his drug test. If he loses this fight, he will be suspended from the end of the Ravens' preseason to Oct. 14.
However, the Denver Post, citing two unnamed sources, reported Tuesday that McBean has settled his lawsuit with the league. His suspension has been reduced to three games after he agreed to drop his lawsuit, the newspaper reported.
"We are giving Ryan the opportunity to compete and make our 53-player roster," general manager Ozzie Newsome said. "We've done our research and consulted with the league office about Ryan and then signed him."
The Broncos removed McBean's $1.272 million restricted free-agent tender last month after they signed Justin Bannan. McBean, 28, started 21 games the past three seasons for the Broncos. He had a career-high four sacks last year.
Cornerback Cary Williams has also signed his $1.927 million second-round restricted tender.
Information from The Associated Press contributed to this report.