The deal was first reported by The Vertical.
TheCleveland Cavalierstraded two first-round picks to the Denver Nuggets for Mozgov in January 2015.
His two seasons with Cleveland were relative opposites. In 2014-15, the 7-foot-1 center averaged 10.6 points and 6.9 rebounds in 46 games. He started all 20 games during the postseason, in which Cleveland lost to the Golden State Warriors in the NBA Finals.
This past season, Mozgov saw his role significantly reduced. He averaged 6.3 points and 4.4 rebounds during the regular season and just 1.2 points in 5.8 minutes during the postseason, which saw him play a combined 25 minutes in the Cavs' seven-game Finals win over the Warriors.
LeBron James tweeted his congratulations to Mozgov on Friday.
Mozgov turns 30 on July 16.
Information from ESPN's Ohm Youngmisuk was used in this report.