Financial terms were not disclosed, but the Nuggets announced they signed Young to the injury hardship relief exception, which is granted by the NBA, and waived guard Brandon Goodwin in a corresponding move.
Young, 33, played 80 games last season with the champion Golden State Warriors but remained unsigned since becoming a free agent.
The 6-foot-7 Young should provide some much-needed depth for the Nuggets (17-9), who could be missing four starters in Monday’s game against the Memphis Grizzlies.
Denver guards Will Barton (groin) and Gary Harris (hip) and forward Paul Millsap are sidelined with long-term injuries, and the Nuggets also could be without point guard Jamal Murray (shin) on Monday.
Young has averaged 11.4 points per game over parts of 11 seasons with five different teams.