Trading Places?
The Nets and Nuggets have agreed in principle to a trade that would send Carmelo Anthony and several others to the Nets. REUTERS

According to Bergen Record NBA reporter Al Iannazzone, the New Jersey Nets and Denver Nuggets have agreed in principle to a trade that would send Carmelo Anthony to Newark. However, the deal hinges on whether or not Anthony agrees to a three-year, $65 million contract extension with the Nets.

Sources say that Nets owner Mikhail Prokhorov, GM Billy King, CEO Brett Yormark and part-owner Jay-Z are in Los Angeles for this weekend's All-Star Game festivities and will meet with Anthony at some point to try and sell him on the future of the Nets which includes moving to Brooklyn before the 2012-13 season.

The framework of the deal is as follows, according to Iannazzone: The Nets will get Anthony, Chauncey Billups, Sheldon Williams, Melvin Ely and Renaldo Balkman from the Nuggets. In turn, the Nets will send Devin Harris, Derrick Favors, Troy Murphy, Ben Uzoh and four first-round picks to Denver.

The Nets main selling point will be the team is moving to Brooklyn—where Anthony is from—and will have the salary cap flexibility with this deal to bring in another major star through free agency, such as current Charlotte Hornets point guard Chris Paul.

In January, Prokhorov called off all talks with the Nets, but they resumed this week after it had become more apparent that Anthony wants to leave Denver—it's believed he wants to become a New York Knick—and the Nets can offer the best package for a trade.

If Anthony says yes to the deal, it'll be one of the biggest in-season NBA trades ever, and could change the the playoff picture in the Eastern Conference. Though currently 17-40, the Nets are only 8.5 games out of the eighth seed.