Adrian Wojnarowski of Yahoo! Sports is reporting that the Nets and Nuggets have agreed to terms on a deal that would bring Carmelo Anthony to New Jersey/Brooklyn.

The Nets and Nuggets are discussing a deal that would send Anthony, Chauncey Billups, Melvin Ely, Renaldo Balkman and Shelden Williams to the Nets for Derrick Favors, Devin Harris, Troy Murphy, Ben Uzoh and four first-round draft picks, league sources told Yahoo! Sports on Thursday night.

The Nuggets are expected to move Murphy and his $12 million expiring contract to a third team and sweeten the deal with one or two of the Nets’ draft picks.

Here’s how the trade looks in the ESPN Trade Machine. (Click the picture to see it at ESPN.)

Keep in mind that in addition to Harris and Favors, the Nuggets would get four first round picks from the Nets. They’re expected to send one or two of those along with Troy Murphy to a third team to get rid of his salary. If they’re successful, they’ll shave $20 million off of this year’s payroll (though most of that money has already been paid to the players).

It will be interesting to see how the Nets come up with four first round picks. They currently own the 6th-worst record in the league, so their own pick could be very valuable, but the Warriors’ 2011 pick that they acquired as part of the Marcus Williams trade is protected through 2013 before it turns into a pair of second round picks.

This looks like the best deal available for the Nuggets, who apparently covet Favors. The only thing that seems to be standing in the way is Anthony agreeing to sign a three-year extension to play for the Nets. If he does, the Knicks will be out of the running. If he doesn’t, then I think the Knicks and Nuggets will get something done before the trade deadline. The Nuggets are truly at Carmelo’s mercy at the moment.