Earl Watson returned to the SuperSonics and forward Ruben Patterson was dealt from Portland to Denver on Thursday as part of a four-team, nine-player trade.
The Kings also were involved in the deal, which was confirmed after league approval and is subject to all players passing physicals.
Seattle sent forward Reggie Evans to Denver and center Vitaly Potapenko to Portland and received Watson, forward Byron Russell and a second-round pick from the Nuggets. Portland sent Patterson and Charles Smith to the Nuggets and acquired Voshon Lenard and forward Brian Skinner from Sacramento.
Portland then sent Potapenko to the Kings along with Sergei Monia.
The trade was expected to be a three-team swap among Seattle, Portland and Denver, but Sacramento joined the mix Thursday morning.
CAVALIERS TRADES: Cleveland acquired guard Ronald Murray from Seattle, one of its two deals before the trade deadline. The Cavaliers sent guard Mike Wilks to Seattle for the Murray. The Cavaliers also sent their second-round pick in this year's draft to Philadelphia for forward Lee Nailon and the 76ers' second-round pick this season. The Cavaliers also waived swingman Stephen Graham from Brandon High.
MORE TRADES: Miami got Derek Anderson for Houston guard Gerald Fitch New Orleans added frontcourt depth by acquiring forwards Marc Jackson and Linton Johnson III from New Jersey for forward Bostjan Nachbar.
TRAIL BLAZERS: Paul Allen's spokesman said the future of the Portland franchise is uncertain after the billionaire owner's investment managers estimated the franchise stands to lose more than $100-million over the next three years.
HORNETS: Forward Jackson Vroman is expected to miss the rest of the season with a broken right wrist.
SHOWCASE RATINGS FALL: The All-Star Game drew record low ratings on TNT as it went against Winter Olympic coverage on NBC. Sunday's game in Houston was watched in 4.3 percent of U.S. households with televisions, Nielsen Media Research said. That's down 12 percent from last year.