The Golden State Warriors are in advanced discussions on a three-way, sign-and-trade scenario centered on delivering a trade exception and Utah Jazz free agent Randy Foye to the Denver Nuggets, league sources told Yahoo! Sports.

In the deal, which could be finalized on Monday, Denver would sign-and-trade forward Andre Iguodala to Golden State for the four-year, $48 million contract he had agreed to sign with the Warriors. This would create a $12 million trade exception that the Nuggets would have a full year to use before it expires.
Utah would sign-and-trade Foye to Denver on a three-year, $9 million deal, with a team option on the third season, sources said.

The sign-and-trade would give the Warriors the salary cap flexibility to sign their 2013 first-round pick, Serbian Nemanja Nedovic, and preserve the Warriors' midlevel salary exception. Golden State would send Utah a future second-round pick for its role in facilitating the deal.