Clady is in the final year of his deal and is scheduled to earn $3.5 million in 2012.
Clady has started every game for the Broncos since 2008 when he was drafted with the No. 12 overall pick out of Boise State. He was a first-team All-Pro in 2009 when he made the Pro Bowl, but has yet to regain his form since injuring his knee in the 2010 offseason.
Last year, Denver surrendered 42 sacks to opponents -- 33 of them occurred with Tebow in at quarterback -- which was 10th-worst in the league.
In 2010, the last full season Manning played as a starter, he was sacked only 16 times.