The person spoke to The Associated Press on condition of anonymity because the trade had not been announced.
Jeremy Lin is headed to his fifth National Basketball Association team in the last five years.
Lin told the Nets website earlier this week that he has yet to participate in full-contact drills as he rehabs the injury.
Lin, 29, played in only one game last season with Brooklyn, sustaining a season-ending ruptured patellar tendon on opening night.
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The Legends will also have Seuly Matias participating in the highly regarded Futures Game during the All-Star festivities. In 44 appearances, the 23-year-old righty has thrown 41.0 innings and sports a 4-1 record with a 2.85 ERA.
Lin has a year and $12.5 million left on the contract he signed two summers ago.
The Brooklyn Nets traded Lin on Thursday night to the Atlanta Hawks, according to ESPN's Adrian Wojnarowski. Additionally, the Nets will send the Hawks a 2025 second-round pick and the right to swap second-round picks in 2023, according to Woj. The Hawks then acquired the rights to high-scoring former Oklahoma star Trae Young in the draft.
As for the other deal, the Nuggets freed up $21 million in salary and potentially save $43 million in payroll and luxury tax next season, Wojnarowski reported. The undrafted Harvard product averaged 14.5 points, 5.1 assists and 1.2 steals per contest in 2016-17, his first season with the Nets.