Waddle was initially listed as questionable after practicing in limited fashion on Friday; he hadn't participated in either of the team's prior two practices.
Ultimately, he was downgraded Saturday as Miami elevated wide receiver Robbie Chosen from the practice squad.
Waddle had four catches for 86 yards in the Dolphins' win over the New England Patriots in Week 2 before a hit from Patriots linebacker Marte Mapu knocked him out of the game late in the fourth quarter. Mapu was flagged for unnecessary roughness and fined $5,620 for the helmet-to-helmet hit, a source told ESPN's Mike Reiss.
Chosen signed a contract with the Dolphins this offseason but was part of initial roster cuts in August. The team quickly signed him to its practice squad, and he will be active against Denver on Sunday.