Kenneth Faried reportedly agreed to sign a contract extension with the Denver Nuggets to avoid hitting free agency after the upcoming 2014-15 NBA season.

Adrian Wojnarowski of Yahoo Sports first reported that Faried will sign a five-year deal worth $60 million. The fifth year of the deal is reportedly partially guaranteed, which assures the do-it-all forward that he will get at least $52 million over the duration of the new deal.

Sources indicated that the Nuggets have intensified their bid to secure Faried's long-term future in Denver. Thad Foucher, Faried's agent, reportedly had several exchanges of proposal with Nuggets general manager Tim Connelly over the past several days before the two sides reached a common ground.

However, NBC Sports reported that the two sides could be forced to change the terms of the deal because the reported five-year, $60 million deal would violate the current Collective Bargaining Agreement (CBA).

According to Dan Freidman of CBS Sports, teams are only allowed to extend a rookie-scale contract for four years unless that team is willing to make the player as their "designated player" by offering a five-year maximum deal.

It means that if the Nuggets want to extend Faried's contract for five years, they should offer a max deal worth around $89 million, which is way higher than the current total salary of $60 million.

Wojnarowski said on Monday that the CBA rule is "ambiguous," but he also added that the Nuggets have already consulted the league about the new deal and are now just planning to offer a four-year deal.

"CBA verbiage on five years for rookie ext. less than max is ambiguous, at best. Denver talking w/ NBA on Faried now, could turn to four-year deal," Wojnarowski posted on his Twitter account.

Faried could become a restricted free agent if no extension is signed until Oct. 31. The Nuggets previously mulled trading the 24-year-old, but Faried proved his worth as he averaged 13.7 points and 8.6 rebounds last season, while also making a huge impact for Team USA in the 2014 FIBA Basketball World Cup.

For the latest sports news, follow Latin Post Sports on Twitter.   

FOR MORE NBA TRADE AND FREE AGENCY NEWS, CLICK ON THIS LINK TO VISIT LATIN POST.COM'S SPORTS PAGE.