The Broncos won’t need to wait and see if a team submits an offer sheet for offensive lineman Alex Palczewski.

Palczewski, entering his fourth season, was in line to become a restricted free agent next Wednesday. However, the Broncos on Thursday re-signed him to a two-year contract that a source said could be worth as much as $11 million.

The Broncos could have opted to place a tender on Palczewski by next Wednesday, resulting in another team being able to sign him to an offer sheet. Tenders are $3.52 million for the right of first refusal, $5.77 million for a second-round pick as compensation and $8.05 million for a first-round pick as compensation. The $8.05 million figure was not a possible consideration by Denver.

Palczewski played in all 17 games last season, starting 10. While usually a right tackle, he started those games after left guard Ben Powers suffered a torn biceps muscle in Week 5 that ended up sidelining him for nine games.

Palczewski started two games after Powers returned with three games left in the season and worked his way back gradually. Powers then started the regular-season finale and Denver’s two playoff games.

A source said Thursday night that Powers will remain with the Broncos with no change to his contract. There had been speculation that, with the signing of Palczewski, Powers could be traded, released or asked to take a pay cut.

But Powers learned Thursday night that his contract will remain as is. He has one year left on his deal for a nonguaranteed base salary of $11.99 million.

Palczewski signed with the Broncos as an undrafted free agent in 2023 out of Illinois. He was on injured reserve in 2023 until the final game, when he did not play. In 2024, Palczewski played in 14 games, starting three at right tackle when Mike McGlinchey was out with a knee injury.