Terms of the deal were not disclosed.
Lloyd, who was a fourth-round choice of the San Francisco 49ers in 2003 from the University of Illinois, started five games last season with the Bears. Lloyd had 26 receptions for 364 yards with two touchdowns. Lloyd started all four of Chicago's games in September. Lloyd will join former Bears quarterback Kyle Orton on the Broncos.
Last September, Lloyd caught 15 passes for 249 yards for the Bears.
Prior to Chicago, Lloyd spent the 2006 and 2007 seasons with the Washington Redskins. Lloyd spent 2003-05 with the 49ers. In 79 career regular-seaons games with 47 starts, Lloyd has totaled 156 receptions for 2,253 yards and 15 touchdowns.
At the University of Illinois, Lloyd was a two-time All-Big Ten conference selection who finished his career ranked second in school history in both receiving yards (2,583) and receiving touchdowns (21). Lloyd's 160 career receptions placed him third in the school's record books, and he became the second player in Illinois history to post two 1,000-yard receiving seasons.