The Nuggets also get cash in the deal, announced Monday by Mark Warkentien, Denver's vice president of basketball operations.
The 6-foot-8 Balkman averaged 3.4 points and 3.3 rebounds in 65 games for the Knicks last season. He has averaged 4.2 points and 3.8 rebounds in two seasons with the Knicks, shooting .499 from the field.
Green averaged 1.1 points in nine appearances with Denver last season. Jones averaged 3.4 points and 1.5 rebounds in two stints with the Nuggets during the 2007-08 season.