Nurkic, 23, turned down a more lucrative four-year deal several months ago, but the marketplace has tightened and he chose to take this deal on Friday, sources said. The deal includes a partial guarantee in the fourth year.
Nurkic averaged 14.3 points, 9 rebounds and 1.4 blocks per game for the Blazers, who earned the No. 3 seed in the Western Conference. He has averaged 10.4 points, 7.3 rebounds and 1.2 blocks in his four seasons between the Denver Nuggets and Trail Blazers.
Denver traded Nurkic to Portland for Mason Plumlee and a first-round pick in February 2016. He was the 16th overall pick in the 2014 NBA draft.