Daiyan Henley is not going to Denver after all.

The Broncos announced late Wednesday night that their trade for the Los Angeles Chargers linebacker "will not be finalized."

Denver agreed to the deal just before Tuesday's trade deadline. At the time the team said it was pending a physical.

What went wrong

The Broncos did not give a reason for calling it off. Henley was at the team's facility on Wednesday and went through a physical there, according to team sources.

"We have great respect for Daiyan as a player and person and we wish him all the best moving forward," the Broncos said in a statement.

Shortly after Denver's announcement, the Chargers posted "Welcome back, Daiyan" on social media.

Denver had agreed to send a 2027 fourth-round pick and a 2028 fifth-round pick to Los Angeles for Henley.

Who Henley is

Henley was a third-round pick by the Chargers in 2023. He has 51 tackles this season, the most on the team. He led the Chargers in tackles in each of the last two seasons with more than 100 both years.

He has 317 tackles, five sacks and four interceptions in 56 career games. He has started 41 of 42 games over the last three seasons.

Henley turns 27 next week. He is in the final year of his rookie contract and can become a free agent in 2027.

Where it leaves Denver

The Broncos are 7-2 and in first place in the AFC West. They have won five straight games. They wanted more depth at inside linebacker, where Alex Singleton and Justin Strnad have started every game this season.

Singleton leads all NFL defensive players with 617 snaps. Denver's defense ranks 23rd against the run.

Coach Sean Payton and general manager George Paton have not spoken publicly about the deal. The Broncos are on their bye week and play the Las Vegas Raiders at home on Nov. 22.