The news that the two sides were close to an agreement was first reported by Home of Glory.
Howard played last season with the Nuggets on a two-way contract. He became an unrestricted free agent when he was not extended a qualifying offer.
The undrafted guard out of Marquette suffered a sprained knee early last season, then appeared in 31 regular-season games after he returned. He averaged 4.1 PPG in 5.7 MPG.
During his rookie season in 2020/21, Howard has averaged 4.3 PPG in 37 games with Denver. He also saw action in nine postseason contests.