Chandler's $12.8 million expiring contract will be absorbed into the Sixers' available cap space. Denver has been looking to unload salary for months.
The deal will save Denver $50 million in combined salary and luxury tax. The Nuggets' tax bill now drops from $51.3 million to $14.3 million.
Chandler's contract can be traded immediately without any restrictions because Philadelphia acquired him with available cap room.
The 31-year-old has averaged 13.5 points and 5.4 rebounds per game during his career. He started 71 games last season and averaged 10.0 points and 5.4 rebounds per contest.