Free agent guard Troy Daniels is finalizing a deal with the Denver Nuggets, league sources told ESPN's Adrian Wojnarowski.
Daniels cleared waivers Wednesday after working out a release with the Los Angeles Lakers.
He played only three games this season -- the last on Jan. 28 -- because of suspensions and poor conditioning.
Daniels, 28, averaged 4 points in 11 minutes this season.
The Nuggets' cap hit on the veteran guard will be $385,000, with Daniels earning $481K. He will also earn $2 million from the Lakers.
Information from ESPN's Bobby Marks was used in this report.