Lawson will wear a bracelet that checks for alcohol consumption and attend an alcohol rehabilitation program at a luxury facility in Malibu, Calif.
Lawson was arrested for DUI for the second time this year on July 14 after officers pulled him over on the 101 Freeway in Los Angeles for speeding.
He was also arrested for DUI in January when a policeman observed him driving 60 mph in a 35 mph zone.
• MORE NBA: Sources: Lakers among teams interested in Lawson
Lawson led the Nuggets in both points (15.2) and assists (9.6) per game this season and has been the subject of recent trade rumors.
According to SI.com’s Chris Mannix, Sacramento Kings head coach and former Nuggets head coach George Karl is interested in reuniting with Lawson.