The Nuggets announced on Tuesday that they have exercised its option on the six-year contract George Karl signed when he was hired to coach the team Jan. 27, 2005, and he now is under contract through the 2009-10 season.

"We feel this is a very good day for the Nuggets organization," Nuggets owner Stan Kroenke said in a statement. "As we?ve said all along, we?re committed to building a championship-caliber team. The cornerstone of all championship teams is excellent coaches and players, and a passionate fan base. We believe today?s announcement, coupled with the moves we?ve made throughout the offseason will take us closer to achieving our ultimate goal."

"I really want to thank Mr. Kroenke for making this commitment," said Karl. "This franchise is moving in a great direction and I?m honored to be apart of it. I?ve always had a strong affection for Denver dating to my ABA days and living here has only made that stronger. The Nuggets have great ownership, a committed front office and a collection of coaches and players that I think can be special. I look forward to continuing what we?ve started."