"Danny was with the Timbers for a short time, but we appreciate his contributions to the club," said Timbers general manager Gavin Wilkinson in a statement released by the club.
"With Danny being from Portland and having been developed as a player at Westside Timbers, it made this a very difficult decision. He was a great ambassador for the club and the sport in the community.
"It is a good opportunity for him in Colorado and we feel this move is beneficial for all involved. We wish him well."