Several NFL teams had been chasing the signature of the 35-year-old after he was released by the Indianapolis Colts earlier in March.

And the future Hall of Famer has now chosen the Broncos as his next destination and is negotiating a five-year deal worth around $95 million, according to reports.

"It's crazy. It feels so surreal," said Broncos defensive end Elvis Dumervil. "It is such a historic move for our organisation. It's going to be a great time."

Before the latest development Manning was thought to have narrowed his choices down to Denver, the San Francisco 49ers and the Tennessee Titans, but the latter team has now officially ruled out signing him.

"I want to thank the whole organization for their efforts in trying to sign Peyton and also to Peyton for the time he put into the process," Titans owner Bud Adams said.

"Peyton called me this morning to inform me of his decision and obviously I am disappointed, because I thought we would be a perfect fit.

"I was hoping we would win out. I thought we'd be ahead of Denver. I thought he'd want to stay in Tennessee."

Manning did not play at all in the 2011 season as he recovered from neck surgery and was cut by the Colts after they finished with a league-worst 2-14 record.

They own the top overall pick in this year's NFL Draft and are expected to select a quarterback, most likely Andrew Luck from Stanford University.