ESPN's Adrian Wojnarowski reported the terms of Plumlee's three-year, $41 million deal with the Nuggets.
Plumlee was traded to the Nuggets in February after playing for the Portland Trail Blazers for the previous year-and-a-half. His total production dipped slightly in Denver due to playing fewer minutes, but his averages per 36 minutes remained largely intact.
The 27-year-old averaged 14.1 points and 10.1 rebounds per 36 minutes in 81 games last season, per Basketball Reference.
Nikola Jokic had a breakout season for the Nuggets with 16.7 points and 9.8 rebounds per game, so the team was not under pressure to keep Plumlee, a restricted free agent, with the center spot already secure.
Adding Plumlee ahead of the trade deadline, at a time when the Nuggets were the eighth seed in the Western Conference playoff standings, was their way of trying to make a bold move. It didn't ultimately pan out, as they missed the postseason, but Denver did get a glimpse of what he's capable of doing.
At the time of the trade, Ananth Pandian of CBS Sports noted Plumlee's skill set could work nicely alongside Jokic:
"While Plumlee is not a flashy name, he is a hard worker and has blossomed in Portland. He sets good screens, is an excellent passer and a fine defender. Plumlee's passing ability makes him unique among big men and should allow him to play alongside [Jokic] in big lineups for Denver. His durability should also benefit Denver, especially since Plumlee started every game since last season for Portland."
The Nuggets didn't take extreme advantage of their two big men together, but having a full offseason to prepare could give head coach Michael Malone more things to play with as he prepares his lineup.
After finishing last season 40-42, their best record since 2012-13, the Nuggets are set up well to make a move in the West with a talented young core that includes Plumlee, Jokic, Gary Harris, Jamal Murray and Emmanuel Mudiay. Denver also brought in Paul Millsap this offseason in free agency.
The Nuggets aren't a finished product, but they are far more interesting than they have been in years. Plumlee's continued presence will only help their chances of making a playoff push next season.