But the deal could fall apart if Anthony, who becomes a free agent after this season, refuses to sign a contract extension with the Nets, the source told 7NEWS.

Here's the deal: Anthony will go the Nets, while the Nuggets will get 19-year-old phenom Derrick Favors and two first-round draft picks, the source told 7NEWS. Favors was the third overall pick in last year's draft. The Nuggets will also receive the expiring contract of Troy Murphy, which will help Denver reduce their salary cap.

All this will give the Nuggets more money and draft picks to rebuild the team.

The Nuggets, however, deny that they are even discussing a deal with the Nets. Vice president of basketball operations Masai Ujiri told the Denver Post that "nothing is going on" and that Anthony will be suiting up Thursday in the game against the San Antonio Spurs.

Anthony delivered a strong performance in a Tuesday night game against the Orlando Magic. He scored 35 points and grabbed 11 rebounds as the Nuggets won, 111-94.

But Anthony will be on his way to New Jersey if this trade holds true.

Anthony has said he wants to go to the New York Knicks. But they don't have enough to make a deal happen.

The Nets hope to get Anthony to agree to sign the extension by telling the Brooklyn native they're moving to Brooklyn in two years, Bienvenu reported.

This will put the star forward where he wants to be: in the Big Apple.

The Nets are 6-19 after losing Tuesday night.

Editor's Note: 7SPORTS stands by this story that the pieces of a deal are in place -- but it's all contingent on Anthony signing the extension. On Tuesday night, we Tweeted that the Nets and the Nuggets have come to an understanding on the terms of a potential deal. We tweeted,"The Denver Nuggets and the New Jersey Nets come to terms to trade Carmelo Anthony to the Nets." But some media outlets misinterpreted that wording as a confirmation of a trade. That was not the case. We never reported it was a done deal.