The surgery is expected to sideline Ray for at least three months and could jeopardize the start of his season, the source said.
The procedure will be the fourth surgery Ray has had on the wrist, which he initially injured in training camp last season.
Ray has sat out the past two days of OTAs with soreness in the wrist.
The 25-year-old had sought a second opinion on the need for surgery, and he has decided to go with the procedure, according to the source. The NFL Network earlier reported that Ray was going to have the surgery.
Last year's injury-marred season held Ray to just one sack in eight games due to his wrist woes.
"Obviously, anybody who's watched me in my first two years knows what I'm capable of, and last year I wasn't the same me due to injury," Ray said earlier this offseason. "For people holding that against me, it is what it is. I don't care. I'm just going to go out here and do what I can for my team."
The Broncos did not pick up their fifth-year option on Ray last month, making the Missouri product a free agent at the end of this season.
"It's business. Unfortunately, my injury happened," Ray said earlier this offseason. "Do you invest $9 million in the guy who had three wrist surgeries the year prior? Maybe not. I can't blame [president of football operations and general manager] John [Elway] for that, and I can't focus on that. That's not something I'm going to allow to mess up my focus or my commitment to the team.
"I'm going to play as hard as I can and do what I was brought here to do."
Complicating matters for Ray's future in Denver is that the Broncos used the No. 5 overall pick in this year's NFL draft on linebacker Bradley Chubb out of NC State.
Information from ESPN's Jeff Legwold was used in this report.
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