The Raptors announced the move Monday. Carter has averaged 4.9 points, 3.9 assists and 20 minutes per game over 599 regular-season games. He's made 181 starts and averaged more than 15 minutes a game in nine of his 12 seasons.
He split last season between Denver and New York, and has also played for Miami and Sacramento.
The 6-foot-2, 195-pound guard posted his best regular season in 2007-08 with the Nuggets, averaging 7.8 points, 5.5 assists and 22.9 minutes in 70 games.