The Nuggets are discussing a contract extension with Nene, according to sources close to the situation.

More than half the NBA has called Denver about Nene's availability in trades, but the team's first order of business after trading Carmelo Anthony to the Knicks is convincing their offensively talented center to remain with the team.

Nene is eligible to opt out of his contract this offseason, despite being owed $11.6 million for the 11-12 season.