Henry signed his $10.2-million tag in April but hoped to finalize a multi-year contract extension before July 15. He'll now play under the one-year tender and hit free agency again in 2021.
The Titans placed the non-exclusive tag on the running back in March, one day after re-signing quarterback Ryan Tannehill to a four-year, $118-million deal.
The 26-year-old played a vital role in Tennessee's run to the AFC Championship Game a season ago. He led the NFL with 1,540 rushing yards and 16 rushing touchdowns, adding another 446 yards and two touchdowns in three playoff contests.
Henry was the Titans' second-round choice in the 2016 draft and has improved his rushing and scoring output each year since entering the league.