The Golden State Warriors are in advanced discussions on a three-way, sign-and-trade scenario centered on delivering a trade exception and Utah Jazz free agent Randy Foye to the Denver Nuggets, league sources told Yahoo! Sports.

In the deal, which could be finalized on Monday, Denver would sign-and-trade forward Andre Iguodala to Golden State for the four-year, $48 million contract he had agreed to sign with the Warriors. This would create a $12 million trade exception that the Nuggets would have a full year to use before it expires.

Utah would sign-and-trade Foye to Denver on a three-year, $9 million deal, with a team option on the third season, sources said.

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The sign-and-trade would give the Warriors the salary cap flexibility to sign their 2013 first-round pick, Serbian Nemanja Nedovic, and preserve the Warriors' midlevel salary exception. Golden State would send Utah a future second-round pick for its role in facilitating the deal.

Across seven NBA seasons, Foye, who played with Utah in 2012-'13, has averaged 11.5 points per game. Foye averaged nearly 11 points and two assists for the Jazz.

Foye, 29, has had stops with Minnesota, Washington and the Los Angeles Clippers. He'll join a Denver backcourt that includes Ty Lawson, Andre Miller and Evan Fournier. The Nuggets also made a draft night deal to acquire shooting guard Erick Green of Virginia Tech.

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