The 27-year-old agreed to a four-year, approximately $54 million deal that includes a player option on the fourth year, sources say.
Used as mostly a scoring punch off the bench the past three seasons in Denver, Barton is set to be the starting small forward going into next season, sources says.
Last October, Barton turned down a four-year, $42 million extension to bet on himself at the advice of his agent, Aaron Goodwin.
In return, Barton performed at a personal best clip during the 2017-18 season, averaging career highs in points (15.7), assists (4.1), field goal percentage (45.2) and 3-point percentage (37.0).
Barton just concluded a three-year, $10 million deal that he signed in 2015.
He had interest from Indiana, Memphis and Washington, sources said.