MORE: Fantasy waiver wire pickups | Elway era a bust if Broncos fail in playoffs
The Niners will also send a 2016 seventh-round pick to Denver in exchange for a sixth-round pick in the 2016 NFL Draft and a sixth-round pick in 2017, according to ESPN.
Davis has 18 catches for 194 yards and no touchdowns this season for the struggling 49ers, who fell to 2-6 following Sunday’s 27-6 loss to the Rams. Davis had been a hot trade commodity and goes to an undefeated Broncos team coming off a throttling of the previously unbeaten Packers.
MORE: Notable midseason NFL trades
Davis had a season-high six catches against the Rams, but for only 24 yards. Owen Daniels leads the Broncos’ tight ends with 17 catches for 129 yards and two touchdowns.