Chandler, 24, is being offered a five-year, $30-plus million contract with a team option for a fifth year.
This frees up money for the Nuggets to sign Chandler, who has a career-average of 13.9 points, 5.2 rebounds and 1.8 assists a game while shooting 45.1 percent from the field.
Chandler, who played overseas in China during the NBA lockout, is a talented forward who is effective on both ends of the court and would be a great piece to pair along the Nuggets' core of McGee, Ty Lawson, Kenneth Faried, Danilo Gallinari and Arron Afflalo.
Being a key piece in the Carmelo Anthony trade last trade deadline, Chandler would be a brilliant signing by the Nuggets to retain another young, talented asset.
Chandler is a hustler and provides Denver's frontcourt with good size (6'8", 225 pounds) and abilities.
If Denver re-signs Chandler for a longer deal, their starting lineup would be Lawson, Afflalo, Gallinari, Faried and McGee with Chandler being a sixth man off the bench.
All the players are relatively young and can play together for a long time.
Signing Chandler to a long-term deal is a no-brainer for the Nuggets, who will look really smart when this deal is finalized.