Smith had returned to practice last week. He had hip surgery in February. The Broncos had until Nov. 14 to activate him off the physically unable to perform list, but Shanahan said Smith wasn't going to be ready so they shut him down.
As for Smith's future, Shanahan said he wasn't sure what the 37-year-old receiver would do.
"I think it all depends on the progress he makes in the next three months and how he feels," Shanahan said. "Right now he's not in position to practice. You can see he's too far away."
Moss, Denver's first-round pick in April, was inactive last week but the Broncos still thought he could be an impact player for them later this season. Shanahan said Moss also tore ligaments in his ankle, and will need surgery. His recovery time will be three-to-four months, so he will go on injured reserve.
Moss' injury happened during a drill, where he fell awkwardly trying to break free from an offensive lineman.
"Kind of a freak accident," Shanahan said.
--S John Lynch has no structural damage in his neck and can play as soon as the symptoms from a stinger he suffered against Green Bay subside. Lynch was a limited participant in practice Thursday.
--DT Sam Adams returned to practice Thursday. Adams has been getting every Wednesday off during the season to keep his knees healthy.
--RB Travis Henry was a full participant in practice for the second straight day. He has injured ribs but should be able to play this week.
--LB D.J. Williams has practiced all week despite a shoulder injury. He suffered the injury against Green Bay but stayed in the game.
--CB Champ Bailey was limited most of last week with a quadriceps
injury, but has been a full participant all week in practice. Bailey gave
up a long touchdown against Green Bay last week.
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