Nuggets exercise option on Karl

He is now under contract through the 2009-10 season.

"We feel this is a very good day for the Nuggets organization," said team owner Stan Kroenke. "As we’ve said all along, we’re committed to building a championship-caliber team. The cornerstone of all championship teams is excellent coaches and players, and a passionate fan base. We believe today’s announcement, coupled with the moves we’ve made throughout the offseason will take us closer to achieving our ultimate goal."

Since taking over the Nuggets in January of 2005, Karl has piloted the team to a 76-46 regular-season record. Last season, Denver won the Northwest Division — its first division crown since 1987-88.

In 2004-05, the club went 32-8 under Karl’s stewardship, the best winning percentage in NBA history for a coach that took over in the middle of a season.

Karl’s 784 career wins over 18 seasons, with Cleveland, Golden State, Seattle, Milwaukee and the Nuggets, are tied for 12th-most in NBA history. His teams have won six division titles and have qualified for the postseason 15 times.

"I really want to thank Mr. Kroenke for making this commitment," said Karl. "This franchise is moving in a great direction and I’m honored to be apart of it. I’ve always had a strong affection for Denver dating to my ABA days and living here has only made that stronger. The Nuggets have great ownership, a committed front office and a collection of coaches and players that I think can be special. I look forward to continuing what we’ve started."