According to Matt Maiocco of NBC Sports Bay Area, the 49ers are set to release defensive end Kerry Hyder, a move that will become official on Saturday.
The 49ers are preparing to host the Dallas Cowboys at Levi's Stadium on Sunday night. However, Gregory will not be suited up for the contest against the team that made him a second-round draft pick in 2015.
Shanahan confirmed that Gregory completed his physical in Santa Clara today but is returning to Denver to see his family and gather his belongings. He will rejoin his new teammates on Monday.
Hyder, 32, has registered one tackle and a sack in 59 defensive snaps this season, per Pro Football Reference.
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