The team announced the news on its Twitter account Tuesday.
Miller played only 20 games last season as he served more of a coaching role from the bench for a Nuggets team that missed out on the final playoff spot in the Western Conference.
Over his career, Miller also played for Cleveland, Memphis, Miami, Washington, Minnesota and Orlando. He suited up in 1,032 games and averaged 10.6 points.
Miller was the sixth man of the year in 2005-06 while with the Grizzlies. He averaged 13.7 points that season and made 138 3-pointers.
In addition, Miller was named to the All-Rookie team in 2000-01 after being taken with the fifth overall pick by the Magic.