The Denver Nuggets have exercised the fourth-year option on guard Arron Afflalo’s contrac and signed forward Renaldo Balkman to a contract extension, team Vice President of Basketball Operations Mark Warkentien announced today.

In his first two games with Denver, he has averaged 1.5 ppg and 1.0 apg in 18.5 minutes.

Afflalo was acquired by trade from the Detroit Pistons on July 13 in exchange for a second-round pick in the 2011 NBA Draft.

The UCLA product was selected by the Pistons in the first round (27th overall) of the 2007 NBA Draft and averaged 4.3 ppg and 1.8 rpg in 14.8 minutes per contest in two seasons in Detroit.

Last season, Balkman averaged a career-high 5.0 ppg and 3.8 rpg while shooting a career-high .558 from the field in 53 games with the Nuggets.

Balkman was acquired by trade from the New York Knicks on July 28, 2008 in exchange for guard Taurean Green, forward Bobby Jones and a 2010 second round draft pick.

Balkman was originally selected by New York in the first round (20th overall) of the 2006 NBA Draft out of the University of South Carolina and has averaged 4.4 ppg and 3.8 rpg and has shot .517 from the floor in 186 career games.