A person familiar with negotiations says that Manning and the Broncos completed his five-year contract worth about $96 million on Tuesday morning.
The person spoke on condition of anonymity because Manning is to be introduced at a news conference at Broncos headquarters later.
Turns out Tebowmania may have just been a fad in the Mile High City.
ESPN and the NFL Network first reported on the completion of the Manning deal.
With the 35-year-old Manning recovering from a string of neck surgeries, Irsay released him two weeks ago rather than pay a $28 million bonus.
But plenty of teams still believed Manning can still be the kind of leader who guided Indy to 12 wins a season from 2001-10.
Elway and company beat them all out. The man who led the Broncos to two Super Bowl titles in the late 1990s, and now serves as Denver's vice president of football operations, Elway never sounded all that convinced Tebow was the answer at the league's most important position. He could now trade the hugely popular quarterback, who energized the Broncos in a run to the playoffs last season but also was plagued by erratic play.
If so, expect the Broncos and Denver to be more upbeat about getting Manning than downcast over potentially losing Tebow.
Several Broncos predicted the free agency floodgates will swing wide open once Manning officially joins the team.
"I think we'll sign some guys, probably a few guys, like Dallas Clark, Jeff Saturday, guys waiting to see what Peyton was going to do," Ayers said. "Defensive guys want to play with a lead, and I'm pretty sure guys are going to assume Peyton will put up points in this offense, we have some weapons."
The neck surgeries forced him to miss all of the 2011, even as he was the highest-paid QB in the game, and several teams that courted him wanted to see him throw. Denver was among them.
Last week, Manning worked out for Elway, coach John Fox and others in North Carolina at Duke's athletic facilities. Elway said afterward that Manning "looked comfortable" throwing the ball.
The other issue is what to do about Tebow, who has three years left on his contract.
Afterward, Elway declared Tebow was the Broncos' starting quarterback heading into training camp this summer but said the southpaw would have to improve his flawed mechanics and footwork to win the job heading into the season.
He also said he'd spent time tutoring Tebow himself and would add more quarterback competition through the draft and free agency.
Did he ever.
They already have three titles in the family - Eli with two. Now the older brother has another good chance to even the score.
AP Sports Writer Pat Graham contributed to this report.
Follow AP Pro Football Writer Arnie Stapleton on Facebook and http://twitter.com/arniestapleton