Danilo Gallinari finalizing two-year extension with Denver Nuggets

Danilo Gallinari is finalizing an agreement on a two-year extension worth an additional $34 million with the Denver Nuggets, according to a report by Yahoo! Sports.

The restructured deal includes a $2.5 million increase on the $11.5 million owed to Gallinari as he enters the final year of his contract in 2015-16, according to the report.

Under the new deal, the forward will reportedly make $14 million this season and $15.5 million in 2016-17, and will have a player option worth $16.1 million for the third year of the deal with a full trade kicker.

The Nuggets were able to rework Gallinari's deal after opening up cap space with the trade of point guard Ty Lawson to the Houston Rockets on Sunday.

Gallinari, 26, averaged 12.4 points and 3.7 rebounds last season.