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Denver Nuggets coach Michael Malone has signed a contract extension through the 2022-23 season, league sources told ESPN.

The Nuggets made official an agreement on Tuesday.

Malone, 48, was awarded his second extension in consecutive years, reflecting the team’s steady climb into Western Conference contention under his watch. Denver reached the playoffs for the first time under Malone a year ago, advancing to the West semifinals before losing a seven-game series to Portland.

Denver’s management — governor Josh Kroenke, president of basketball operations Tim Connelly and GM Arturas Karnisovas — hired Malone at the start of a difficult franchise rebuild in 2015, and allowed him to develop an increasingly talented core of young players.

“His tireless work ethic and passion are clearly reflected in the continued improvement of our roster,” Connelly said in a statement. “We are all extremely excited for him to continue to lead our team as we try to build a championship-level organization.”

The Nuggets’ victory total has increased in each of his seasons (33, 40, 46 and 54). The Nuggets are 21-8 this season, trailing only the Los Angeles Lakers in the West standings.

“None of this would be possible without the hard work, dedication and trust from our players as well as the entire coaching staff,” Malone said in a news release. “I’d also like to thank the amazing fans in Denver who have helped make Pepsi Center one of the toughest places to play in the NBA once again. I look forward to continuing our ultimate goal of winning NBA championships.”

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