The Denver Nuggets have extended a qualifying offer to forward Trey Lyles, which effectively makes him a restricted free agent.

This move gives Denver some time in deciding what to do with Lyles next season. Any team can extend their offer sheets for the 23-year old, but Denver has the option to match the offer if they want.

The Nuggets appear to be running it back after also picking up the $30 million team option on veteran forward Paul Millsap for next season. However, it is not yet certain whether Lyles is part of their plans.

The Canadian-born forward served as the primary backup for Millsap and Nikola Jokic last season. However, he fell out of the rotation during the Nuggets' impressive 2019 playoff campaign.

Denver is also very optimistic for the debut of Michael Porter Jr. next season. Should Porter Jr. translate well for them, Lyles could potentially lose more minutes moving forward.

Lyles took a step back last season after having a mini-break out campaign in 2017-18. He posted just 8.5 points and 3.8 rebounds in 2018-19 after a year that saw him put up 9.9 points and 4.8 boards.

Perhaps another change of scenery would be the best option for Lyles at this point. Millsap is obviously the veteran presence that this young Nuggets team needs right now, while Porter Jr. offers a higher upside for them in the future.

Still, Lyles shouldn't have trouble finding a team that can use his skills. His game is perfect for the modern NBA as a versatile big man who can stretch the floor.