Phoenix could claim him in the waivers process, allowing it to use his Bird rights to re-sign him to a new deal this summer. If he clears waivers, the Suns have a roster spot to sign him for the rest of the season.
McRae, 28, joined the Nuggets as part of a February trade deadline deal with Washington, but he hadn't been part of Denver's regular playing rotation and hoped to find a team that might have a bigger role for him. The Suns are still hopeful they can make a run to the eighth seed in the Western Conference playoff chase, although they enter Sunday 5.5 games out of the eighth seed.
McRae averaged 12.8 points in 29 games with the Wizards, but he only played four games -- averaging eight minutes -- after coming to the Nuggets.