Irsay's plane arrived in Indianapolis just before 9:30 p.m. The pair walked off the plane together and got into Irsay's SUV, with Irsay behind the wheel.
As they were leaving the airport, they stopped to talk to the media. RTV6 sports reporter Jason Spells asked them if they were happy about the decision.
"We're good, right Jim?" Manning said, smiling throughout the impromptu interview. "We're good. We're going to talk tomorrow. We're going to do it the right way tomorrow."
ESPN reported earlier Tuesday that the Colts would announce Wednesday that the team will part ways with Manning.
Citing sources close to the team, ESPN senior NFL analyst Chris Mortensen reported that the announcement would come at a news conference in Indianapolis with both Manning and team owner Jim Irsay in attendance.
Manning turns 36 later this month, and missed the entire 2011 season after a third neck surgery. Before that, he'd never missed a game in his 13 NFL seasons.
He is owed a $28 million bonus, and with the Colts holding the top draft pick, they apparently have decided it was too risky and pricey to keep the four-time league MVP.
Mortensen said sources told him that Manning said he intends to continue to play in the NFL.
Manning's older brother, Cooper Manning, told USA Today that his brother would be leaving the Colts.
"I don't think Peyton's done any personal diligence on what the next step is. Until it was over, he was a Colt through and through," Cooper Manning said. "Now, he'll have to re-evaluate and see what this next chapter reads like."
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