J.R. Smith is in a tough spot with the Nuggets.

Denver is focused on what to do with Carmelo Anthony, while Nene appears second on their list.

Smith will be a free agent after the 2010-11 season and admitted that he doesn't know what his future holds.

"I'm in a tough situation," Smith said. "They don't really know what they want to do, as far as what direction they want to go in — if they do (trade) Melo or if they don't. So it's tough for me in my position because I don't know where I stand. So, you just have to keep playing it out and see how it looks."

He is in the last year of a three-year, $16.5 million contract he signed in 2008.

"Everybody says they want to keep me here and all of that stuff, but I think everybody knows that if the right deal comes along, something will happen," he said. "So it's hard to say, when your superstar is about to be moved. For them, it's kind of hard to worry about my situation."

His preference is to stay put.

"I love it here," said Smith, who has been with Denver for five seasons. "I love playing in front of this crowd."