ENGLEWOOD, Colo. -- The Denver Broncos have been busy since they acquired quarterback Zach Wilson in a trade last week to beef up their impending competition for the starting job.

Thursday, they selected Oregon quarterback Bo Nix in the first round of the NFL draft (12th overall), and sources said the Broncos have informed Wilson and his representatives that they will not pick up the fifth-year option in Wilson's contract. As the No. 2 pick of the 2021 draft by the New York Jets, Wilson's rookie deal included a fifth-year option for the 2025 season.

The option would have been for a guaranteed $22.408 million. By league rules, the deadline to pick up the fifth-year option for 2021 first-round picks is Thursday, and it puts Wilson in a position to try to make the most of the 2024 season with the Broncos before he hits free agency in March.

The Broncos have already engaged the fifth-year option on cornerback Pat Surtain II's contract for $19.8 million.

Last week, the Broncos traded a sixth-round pick in this past weekend's draft to acquire Wilson and a seventh-round pick, and the Jets will pay a significant portion of Wilson's $1.055 million base salary. Wilson, Nix and Jarrett Stidham, who started the final two games of the 2023 season after Russell Wilson was benched, will compete for Denver's starting job.

"They're all going to compete," Broncos coach Sean Payton has said.

The Broncos represent a potential fresh start for Wilson, who had a 57% completion rate and threw 25 interceptions to go with 23 touchdown passes in his three seasons with the Jets.

"We were really happy to bring Zach on board," Payton said last weekend. " ... We know we wanted to add into the [quarterback] room, and I think I said that much even at the owners meetings. We really liked that opportunity. There were a number of veteran backups that signed contracts, and yet we saw talent with a player that just three years ago was the No. 2 pick in the draft. We really like his traits."