The sides moved close to the agreement earlier in the day when the Knicks agreed to include 24-year-old rookie center Timofey Mozgov in their offer. He was not a key player in the trade, but his inclusion was a deal-maker for the Nuggets.
The Nuggets will receive forwards Danilo Gallinari and Wilson Chandler, point guard Raymond Felton, Mozgov, the Knicks' first-round pick in 2014, and second-round picks in the 2012 and 2013 drafts that originally belonged to the Warriors.
In return the Knicks will enter the final two months of the season with Anthony, point guards Chauncey Billups and Anthony Carter, big man Shelden Williams and forward Renaldo Balkman, a former Knick.
New York will also receive a second-round pick and Corey Brewer from the Timberwolves, with Eddy Curry's expiring contract, Anthony Randolph and $3 million heading to Minnesota.
A league source insisted that none of the acquisitions would be shipped to the Nets, contrary to reports Monday that Denver was considering a secondary trade of Gallinari to New Jersey.
The trade consummates rumors that were launched at Anthony's wedding last July, when LeBron James and Chris Paul launched a series of toasts that predicted Anthony would come to play in New York with fellow All-Star Amar'e Stoudemire, who signed with the Knicks last summer as a free agent.
The Nuggets could have attempted to trade Anthony to the Nets, but it was known that he wanted to sign a three-year, $65 million extension with the Knicks. The package from New York was more palatable to the Nuggets because they're receiving four Knicks starters who are all 26 or younger, which should hasten Denver's rebuilding efforts without Anthony.