Jaguars coach Jack Del Rio confirmed Sanders, 30, passed his physical during his visit Monday.
"I loved the time that we had with him," Del Rio said. "We're exploring, I know he's exploring, whether or not Jacksonville will be a fit for him. That's the question. How much does he have left? He was very eager to continue his career, thinks he has a couple good years left in him. Certainly when he's on the field, he's one of the more dynamic players in the league."
Sanders, 30, The Associated Press Defensive Player of the Year in 2007, stopped in Buffalo on Tuesday to visit the Bills. He has played in only nine games during the past three seasons.
"The thing I will just add is the injuries that knocked him the last year have been bicep here, bicep here," Del Rio said. "Basically he probably feels as good as he's felt."
When healthy, Sanders has been one of the league's top defenders, and the Jaguars are looking for help on a defense that ranked 28th against the pass (250.2 yards allowed per game) and 28th overall (371.8 yards allowed per game) this season.
Sanders played in 14 games in 2005, earning the first of two Pro Bowl selections. A knee injury limited him to just four regular-season games in 2006.
Sanders was healthy again in 2007, playing in 15 games, earning another Pro Bowl trip and becoming the first Colts player to win the league's top defensive award, but injuries limited him to just six regular-season games in 2008. In 2009, he missed the first five games after knee surgery and, in his second game back, tore the biceps in his left arm and missed the rest of the season.
Sanders didn't even make it through that many games this season. He tore his right biceps on the first defensive series of the season opener and didn't play again.
Sanders has 290 tackles, 3.5 sacks, two forced fumbles, three recoveries and six interceptions in seven NFL seasons.
The Associated Press contributed to this report.