Editor's note: The above video is from March 31, 2016.

Colin Kaepernick is willing to take a pay cut to play for the Denver Broncos, just not one as large as the reigning Super Bowl champions would like.

The Broncos are offering Kaepernick an annual salary of $7 million for the 2016 season and the 2017 season, a source close to the situation told CSNBayArea.com on Tuesday.

Kaepernick and the Broncos have "made progress" on a contract that would run through 2020, ESPN's Adam Schefter reported on Monday.

But the finances over the first two years are not favorable for Kaepernick. Agreeing to Denver's offer would cost the 28-year-old quarterback $12.4 million in base salary, and potentially as much as $16.2 million, over the next two years. His current contract with the 49ers pays a base salary of $11.9 million for the 2016 season and $14.5 million in 2017.

Even if the 49ers were to release Kaepernick before April 1 of next year, the quarterback could earn up to $14.3 million in 2016 -- more than the $14 million he would earn in two years with Denver.

Kaepernick would consider a deal with the Broncos that is slightly under his salary with the 49ers, according to the source. But Kaepernick “made his statement” regarding Denver’s current offer by reporting to San Francisco’s offseason program.

Kaepernick flew from Denver to the Bay Area late Sunday night after meeting with Broncos officials and arrived in time for the Monday morning start to the 49ers offseason program.

The 49ers quarterback will receive a $400,000 workout bonus for 90 percent participation in San Francisco's voluntary offseason program. He spent the majority of his first day under Chip Kelly’s tenure in meetings with new quarterbacks coach, Ryan Day, and offensive coordinator, Curtis Modkins.

A trade between the 49ers and Broncos is still a possibility, but the discrepancy in salary would have to be settled by the teams. Kaepernick and the 49ers are at odds, specifically over the diagnosis of injuries he sustained during the 2015 season, but the 49ers are not willing to pay the $4.9 million difference in salary in 2016 to send Kaepernick to Denver.

[REWIND: Kaepernick, 49ers at odds over injuries]

Kaepernick’s season ended when he underwent surgery in November to repair a torn labrum in his left shoulder. In January, he had a torn ligament in his right thumb repaired and an arthroscopic procedure performed on his left knee. Dr. Peter Millett at the Steadman Clinic in Vail, Colorado performed the work and Kaepernick spent the next two months in Vail undergoing rehab.

Kaepernick has had no setbacks medically, according to the source, and is expected to need at least one more month before he is football-ready.

Under his current contract, which runs through 2020, the 49ers have the option to release Kaepernick before April 1 of each year with a minimal cap hit. 

Kaden Smith’s stock as a draft prospect dropped at the NFL Scouting Combine when he ran the second-slowest 40 time among all tight ends.

The 49ers ended his fall on the third day of the NFL draft when they selected Smith with the first of their three sixth-round draft picks.

Shortly thereafter, 49ers tight end George Kittle, who set the NFL single-season record for tight ends last season with 1,377 receiving yards, reached out to welcome Smith to the organization.

“Right after I got drafted, he texted me: ‘Good luck. He’s happy I’m on the team,’” Smith said of Kittle. “He’s pumped up.”

Smith is plenty excited, too.

Smith played college football just up the road at Stanford. After having contact with the 49ers just once during the pre-draft process and not attending the team’s local pro day in Santa Clara, the 49ers came out of nowhere to select him with the No. 176 overall pick.

The 49ers were determined to add depth behind Kittle, and Smith ended up being the guy they tabbed to give coach Kyle Shanahan more options for two-tight end formations.

“I saw what he did last year, and I’m really excited to come in and learn under him, eventually fight for his spot,” Smith said of Kittle. “I’m not really sure what my role is, yet. I’m just going to go play football, enjoy it, have fun and keep learning.”

Smith (6-foot-5, 248 pounds) declared for the draft after a two-year career at Stanford in which he caught 70 passes for 1,049 yards and seven touchdowns. He missed the final three games of last season with a foot injury and ran a disappointing time of 4.92 in the 40-yard dash.

“I ran at the combine and ended up not running at pro day,” Smith said. “I was just ready to get back to football and figured a team would draft me, based on my skills and I was ready to go.”

Shanahan said Smith’s speed – or lack thereof – is not much of a concern for him. General manager John Lynch, who played his college football at Stanford, watched Smith routinely come up with big catches as part of Stanford's NFL-style offense.

“When your speed isn't great, I'm not going to send him on a bunch of speed routes,” Shanahan said. “But there’s a lot of good tight ends who run around there. Some guys who got drafted early aren't that much faster than him. Speed's not the issue depending on how you want to use him. He's effective in the pass game and we think he could be a good blocker for us, too.”

Said Smith, “I get open. At Stanford through nine games, I had 47 catches, so separation isn’t really a problem for me. And blocking, too. Understanding staying low and going against some bigger guys and doing well against them.”

[RELATED: Davis waits on reinstatement to revive football career]

Seven-year veteran Garrett Celek was the 49ers’ top backup tight end last season. But his production dropped, as he caught just five passes for 90 yards and two touchdowns in 15 games.

Ross Dwelley, who appeared in 11 games last season as an undrafted rookie, and Tyree Mayfield, an undrafted rookie from Wyoming, are the only other tight ends on the 49ers’ 90-man roster.

The move to acquire Jimmy Garoppolo from the New England Patriots was not the only trade the 49ers pulled off on Oct. 31, 2017.

It was not a surprise the 49ers also dealt cornerback Rashard Robinson at the NFL trade deadline. The shocking part is that the 49ers managed to get a fifth-round selection in return from the New York Jets.

On Friday, the Jets released Robinson, 23, who started just two of the 16 games in which he appeared with the club since the trade.

Then-49ers general manager Trent Baalke selected Robinson, who had been kicked out of LSU, in the fourth round of the 2016 draft. Robinson started six of the 14 games in which he played as a rookie and showed some promise for the future.

But the next season, Robinson did not endear himself to the new regime on or off the field. Robinson committed an NFL-high 10 penalties in eight games with the 49ers in 2017.

Shortly after his behavior on a cross-country flight after a 49ers loss angered team officials and veteran players, Robinson was traded to the Jets.

The 49ers received a fifth-round pick (No. 143) overall from the Jets in exchange for Robinson. The 49ers ended up sending that pick, along with offensive tackle Trent Brown, to the New England Patriots for the No. 95 overall pick in the 2018 draft.

The 49ers selected cornerback Tarvarius Moore with the third-round pick.

[RELATED: Jimmy G says Bosa's social media past won't affect 49ers]

Brown ended up starting every game at left tackle en route to the Patriots’ Super Bowl title. Brown signed four-year, $66 million contract with the Raiders this offseason.

Moore is expected to compete, along with Jason Verrett and Ahkello Witherspoon, for the team’s starting job at right cornerback.