If the Broncos had exercised their $1 million option on Okung, he could have earned up to $48 million over another four years.
Okung, 29, had a $1 million option bonus due between the fifth day after the Super Bowl (Feb. 10) and the first day of the league year (March 9). If that option was exercised, his 2017 ($2 million) and 2018 base salaries ($9.5 million) would have become fully guaranteed.
He also was due a roster bonus of $8 million on 10th day of league year. In addition, he was due a roster bonus of $93,750 every game in 2017 that he was on the 46-man active roster.
The Broncos save $10.9 million against their salary cap this season by not exercising the option.
Okung, a first-round draft pick, played with the Seahawks from 2010 to 2015 and was a part of Seattle's 2013 championship team. He signed with the Broncos in 2016.
The Broncos' decision was first reported by Fox Sports.
Information from ESPN's Jeff Legwold was used in this report.