Denver isn't expected to reach a long-term deal with the star pass rusher in advance of the March 1 deadline to utilize the one-year tender, according to Adam Schefter of ESPN.
Miller, arguably the NFL's top pass rusher coming off a Super Bowl MVP performance, was never going to hit the open market.
The sides will now take their time to work out a long-term contract, in the hopes of reaching an agreement over the summer.
Signing Miller to a long-term contract before the franchise tag became necessary could've allowed the Broncos to use the designation on one of the club's other key players.
It remains to be seen whether the Broncos will be able to make competitive contract offers for either during free agency.