Danilo Gallinari finalizing two-year extension with Denver Nuggets

As part of the agreement, Gallinari will receive a raise from $11.5 million in 2015-16 to $14 million, according to league sources. He will make $15.5 million in 2016-17 and has a player option worth $16.1 million for the third year of the deal and a full trade kicker, sources said.

The Nuggets also are close to re-signing veteran reserve Darrell Arthur, the Denver Post reported. Both Danilo Gallinari and Kenneth Faried are waiting for Nuggets management to make final contract offers, and based on how each player performed last season, those contracts will be coming soon.

Gallinari, 26, has been plagued by an ACL injury the last two seasons.

However when healthy, Gallinari is a top-notch scorer with the ability to create for himself. He averaged only 12.4 points per game last season, but his per minute numbers were the best of his career, and probably playing from someone who isn’t Brian Shaw will benefit him and the rest of the Nuggets. He shot 44.3 percent from the field and 40.4 percent from 3-point range.

By keeping Gallinari and Chandler, two players who were mentioned in trade discussions earlier in the offseason, the Nuggets have decided not to completely blow up their roster and will move forward by simply replacing Lawson with Mudiay.