Watch Now: Boomer & Gio: The biggest NBA Free Agency Rumors (2:42)

The Denver Nuggets are hanging onto one of their veteran players in advance of free agency getting underway.

According to ESPN's Adrian Wojnarowski, the Nuggets are exercising a $30 million player option on forward Paul Millsap.

The Denver Nuggets have exercised a $30 million option on forward Paul Millsap's contract for next season, bringing back a key player for the franchise's pursuit of a Western Conference title, league sources told ESPN on Saturday.

Denver can keep Millsap, hold onto its $9.2M mid-level exception and still stay out of the luxury tax next season.

Millsap would've been eligible to enter free agency if the Nuggets declined to pick up his option. The veteran forward is coming off a season in which he averaged 12.6 points, 7.2 rebounds, and 2.0 assists while shooting 36.5 percent from beyond the arc.

The Nuggets transformed into one of the top teams in the Western Conference last season as they earned the No. 2 seed in the postseason. Denver will look to build on that success as it builds around superstar center Nikola Jokic and a dynamic backcourt that includes Jamal Murray and Gary Harris

Denver won a grueling seven-game first-round series and nearly won another in the second round, thanks in large part to Millsap's steady performance. Millsap finished in double figures in all but two of the team's 14 postseason games against the San Antonio Spurs and Portland Trail Blazers.