The Denver Nuggets have agreed to a contract extension with coach Michael Malone, the team announced ahead of its season opener Wednesday.

The Denver Nuggets announced ahead of their opener on Wednesday that coach Michael Malone's contract has been extended. Isaiah J. Downing/USA TODAY Sports

Malone signed a two-year contract extension, league sources told ESPN's Adrian Wojnarowski. Malone was entering the final year of his deal, which now extends through the 2020-21 season.

Malone has improved the Nuggets' win total in each of his three seasons in Denver.

In 2017-18, the Nuggets finished 46-36 and were one game out of the No. 8 spot in the Western Conference and their first playoff appearance in five seasons. An overtime loss to the Minnesota Timberwolves in its final game of the season kept Denver out of the postseason.

"The sense of urgency needs to be there for as close to 82 games as possible," Malone said last month.

The Nuggets face the LA Clippers on Wednesday to start the 2018-19 season.