Sanders spent Tuesday morning traveling to Buffalo, where he will meet with Bills officials later in the day, according to a league source.
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.