Ian Rapoport of NFL Network noted Ray will undergo a new surgery on his wrist and will miss three months while recovering from the procedure, which would put him out for the start of the 2018 campaign.
In any event, it's unwelcome news for Ray, whose 2017 campaign was derailed by three wrist surgeries. The 2015 first-round pick managed one sack over eight games after his season was bookended by stints on injured reserve.
That production represented a step back from his 2016 season, when he racked up a career-high eight sacks and 48 total tackles while appearing in all 16 games.
If there's a sliver of good news for the Broncos, it's that they added serious pass-rushing reinforcements when they drafted Bradley Chubb fifth overall in April's draft to provide pressure opposite Von Miller.
Ray, who had his fifth-year option declined by the Broncos, will be an unrestricted free agent following the 2018 season.