The Denver Nuggets agreed to trade forwards Kenneth Faried and Darrell Arthur, a 2019 protected first-round pick and a 2020 second-round pick to the Brooklyn Nets, league sources told ESPN.

The Nuggets acquire guard Isaiah Whitehead in the trade, whom they will waive, league sources said.

The deal frees $21 million in salary that potentially saves Denver $43 million in payroll and luxury tax in 2018-19.

Nets general manager Sean Marks continues to replenish Brooklyn's arsenal with first-round picks. Denver's 2019 first-round pick is protected 1-12, and the 2020 second-round pick is unprotected.

In 2017, the Nets traded for DeMarre Carroll, whose salary fetched them a 2018 first-round pick.

The Nets were able to absorb Faried's and Arthur's contracts because of the $1.5 million free-agent cap hold of Joe Harris. The trade would not have worked had Brooklyn signed Harris to his $8 million cap hit once the moratorium was lifted.

Brooklyn still has $2.6 million in cap space available, with 14 players under contract. The Nets can exceed the cap to sign Harris because of the early Bird exception. The $4.4 million room midlevel exception is reserved for Ed Davis.

ESPN's Bobby Marks contributed to this report.