The Denver Nuggets exercised a fourth-year option Friday on Carmelo Anthony's contract, ensuring that the forward will spend at least one more season with the team.

Anthony, the third overall pick of the 2003 NBA draft, is under contract with the Nuggets through the end of the 2006-07 season.

He helped lead Denver to playoff appearances in the last two years and has averaged 20.9 points and 5.9 rebounds in his first two seasons.