"It's dormant," Elway said. "He's been working out from what I understand, so, that's all I can say about it."
Elway noted a trade offer remains on the table: "Everything's right there."
NFL Insider Ian Rapoport previously reported the Broncos want Kaepernick to take a pay cut to facilitate a trade. Elway and Kaepernick met two weeks ago to advance the feeling-out process, but an agreement never materialized.
"We're going to have someone compete with Mark and he's one of the possibilities," Elway said.
Added the GM: "We're happy with Mark. Mark's excited about being here. We're excited about having him."
Elway said having Sanchez in the building allows the team to be patient with their search (which sounds like code for: wait out Kaepernick and the 49ers).
"We had a good visit, but he's got another trip lined up. It's a possibility. He's a good football player. We wanted to have him in, meet him and get to know him a little bit. But nothing to report there," Elway said. "... He had a real good year in Houston last year, so he's a guy who's a real possibility with us."
With Trevor Siemian, last year's seventh-round pick, the only other quarterback on the roster, adding competition is paramount for the Super Bowl champs. With the top two quarterbacks in the NFL draft likely to come off the board in the first two selections, it's unlikely a ready-made pro would fall to the Broncos at No. 30.
While a trade for Kaepernick might be "dormant" now, as we race closer to draft day -- perhaps Day 2 -- those talks should heat up significantly.
Other notes from Elway's presser:
» Elway dismissed Von Miller not participating in the offseason program: "This is all voluntary. If Von chooses to be here, then great. You always hope that everybody is here."
The GM said there has been an offer and counteroffer on a long-term deal, but "you'd like to be a little closer." Elway added: "It's not nearly as bad as people have portrayed it out (in the media).
The team remains confident a deal will get done, eventually.
» After winning his first Super Bowl as an executive, Elway lamented how much more fun it is to win as a player: