Simmons signed his franchise tag with the Broncos on Tuesday, a source told Adam Schefter of ESPN.
Both parties have discussed a long-term contract this week, reports NFL.com's Kevin Patra, citing a source.
Teams have until 4 p.m. ET on July 15 to sign tagged players to multi-year contracts. After the deadline, those players may only play the 2020 season under one-year pacts.
Denver placed the $11.4-million tender on Simmons after he recorded his best NFL season last year. The 26-year-old was voted a second-team All-Pro and was the best overall safety in the league, according to PFF.
The 2016 third-round pick racked up 93 tackles, four interceptions, and 15 pass breakups in 2019.