The deal, which starts with the 2023-24 season, includes a player option, Paul said.
Caldwell-Pope had been entering the final year of his contract, which will pay him $14 million. The guaranteed money in the deal will push Caldwell-Pope's career earnings to $120 million.
Caldwell-Pope, 29, arrived to the Nuggets in a trade with the Washington Wizards two weeks ago and is expected to be a key 3-and-D performer to complement MVP Nikola Jokic, Jamal Murray and Michael Porter Jr.
Caldwell-Pope is expected to benefit from Jokic's great passing ability. He is a 41% catch-and-shoot 3-point shooter over the past two years, ranking in the top 10 among 59 players to attempt 500 of those shots, according to ESPN Stats & Information research.
Caldwell-Pope shot 44.8% on open 3-pointers last season with Washington, which ranked him in the top 10 among players with 150 attempts, according to ESPN Stats & Information.
Nuggets general manager Calvin Booth acquired Caldwell-Pope in the trade that sent Will Barton and Monte Morris to Washington. In Caldwell-Pope's first full season with the Wizards, he started 77 games, averaging 13.2 points, 3.4 rebounds and 1.9 assists per game.