The Denver Nuggets have emerged as a serious suitor in pursuit of free agent shooting guard Monta Ellis, a league source told RealGM.

Ellis has been in several substantial discussions with teams, and some sign-and-trade possibilities have arose, a source said. Nevertheless, the Nuggets have the capacity to sign Ellis outright, after losing Andre Iguodala to an agreement with the Golden State Warriors on Friday.

Organizations interested in Ellis have principally been contenders to make deep playoff runs, with the Nuggets separating themselves as a firm candidate. Ellis led the Milwaukee Bucks in scoring last season, averaging 19.2 points to go with six assists and 2.1 steals a game.

The Nuggets established a free-flowing system under George Karl, but they could shift toward a more halfcourt style under Brian Shaw. Despite his individual talent, Ellis and Brandon Jennings never found a consistent rhythm together in the Bucks’ backcourt. Denver has committed its future to Ty Lawson, the 5-foot-11 point guard.

Ellis, 27, spent six full seasons with the Warriors before being dealt to the Bucks in 2012 as part of the Andrew Bogut trade, and he has career averages of 19.4 points on 45.6 percent shooting.