The San Francisco 49ers will insist they are fine keeping Colin Kaepernick on their roster, but all indications are that they will just as willingly trade him if the right offer comes along. NFL Network reporter Mike Silver had an update on the situation Thursday morning. He tweeted out some of his thoughts, suggesting Kaepernick is the Denver Broncos top choice. He also said the 49ers are looking for a second round pick for Kaepernick, while the Broncos might be willing to give up a third round pick. Here is what Silver had to say:

1) What I just reported on @nflnetwork re Broncos: Colin Kaepernick is their chief target. I believe they will go after him via trade... — Michael Silver (@MikeSilver) March 10, 2016

2) The 49ers likely want a second-round pick; Broncos may be willing to part with a third. The dance continues. — Michael Silver (@MikeSilver) March 10, 2016

3) I'm told Kaepernick is likely willing to restructure contract to Broncos' liking... Though, to be fair, it is somewhat team-friendly... — Michael Silver (@MikeSilver) March 10, 2016

I would say "somewhat team-friendly" is an understatement for Kaepernick's contract. It could cost the Broncos $14.3 million for the 2016 season, but they would be on the hook for nothing beyond that. Of course, if Kaepernick likes the idea of Denver, maybe he's willing to take a complete pay cut to push it through.

Of course, it all likely comes back to the draft pick compensation. If the 49ers can get a third given how this situation has gone down, it strikes me as good value. At the same time, the Broncos are in a tough spot with Brock Osweiler gone and nothing really there to replace him. I would be surprised if the 49ers got a second for Kaepernick, but crazier things have happened.