According to Shams Charania of The Athletic and Stadium, the deal is worth $15 million and has a player option for the second season.
Last season, Green appeared in 63 games, coming off the bench in all but one of them. In 20.7 minutes per contest, he averaged 6.8 points, 6.2 rebounds and 1.5 three-pointers while shooting 42.9 percent from the field and 38.7 percent from deep.
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Green's greatest success came in Memphis, where he spent parts of five seasons. His most productive campaign was 2017-18 when he started 54 of the 55 games he appeared in and averaged a career-high 10.3 points, 8.4 rebounds and 1.4 assists.
With Green departing, the Clippers have lost much of their frontcourt depth from last season, as reigning Sixth Man of the Year Montrezl Harrell has reportedly signed with the rival Los Angeles Lakers as well.
In an effort to soften the blow, the Clippers have reportedly re-signed both Marcus Morris and Patrick Patterson.
As a member of the Nuggets, Green will add to Denver's impressive depth. Since Paul Millsap is a free agent, Green's current role looks to be that of a backup to center Nikola Jokic and power forward Michael Porter Jr.
Green is joining a Nuggets team that is coming off an appearance in the Western Conference Finals after shocking his former team, the Clippers, in the second round of the playoffs last season.
Although he figures to come off the bench for the most part, Green showed that he could be an effective starter in Memphis, meaning Denver can feel comfortable about inserting him into the starting lineup if need be.