"Things have gone well for him [in Denver]," agent Leon Rose was quoted as saying of Iverson, who is due to make $20.84 million next year. 'He's looking forward to taking the team [further]."
Iverson had a contract that would have left him the option of opting out of his deal after the season and becoming a free agent.
Instead, he will be with the Nuggets in their bid to qualify for the playoffs for the third time in his first three seasons.
Rose said Iverson was excited about the team's prospects and was looking forward to finishing his career in Denver.
Iverson, 33, was traded to Denver from the Philadelphia 76ers in 2006 in a nasty separation with the team that made him the No. 1 overall draft pick and a worldwide superstar.
Iverson ranked third in the league in scoring in 2007-08, with 26.4 points per game.