The Denver Nuggets have exercised a $30 million option on forward Paul Millsap's contract for next season, bringing back a key player for the franchise's pursuit of a Western Conference title, league sources told ESPN on Saturday.

Denver can keep Millsap, hold onto its $9.2M mid-level exception and still stay out of the luxury tax next season.

Millsap, a four-time All-Star, averaged 12.6 points and 7.2 rebounds a game for the Nuggets. Denver (54-28) had the second-best record in the West and reached Game 7 of the conference semifinals against the Portland Trail Blazers. 

Denver has 12 of its players set to return next season, including a young core of All-NBA center Nikola Jokic and guard Jamal Murray.

"From how I want to do it, how I want my story to be told, [this is] definitely the group that can help me do it," Millsap told reporters after the season about wanting to stay with the Nuggets. "That's definitely a dream and a goal of mine. I think it's the goal for everybody, especially the younger guys."

Millsap ranked third among NBA power forwards -- trailing only Giannis Antetokounmpo and Anthony Davis -- in real plus-minus (4.24). 

Across 13 NBA seasons with the Jazz, Hawks and Nuggets, Millsap has averaged 14.1 points and 7.4 rebounds. He's shot 49% from the field.