James, signed as a non-roster invitee, averaged 3.0 points and 4.0 rebounds in seven preseason games for Denver. He went 8-for-23 from the field.
James played at Texas University before being drafted 24th overall in the 2010 draft by the Atlanta Hawks. He played three seasons for the Nets, but never appeared in more than 25 games (his rookie season) and in just two games for Brooklyn last season.
Damion was battling for a roster spot in Denver, likely against Quincy Miller and Jordan Hamilton. Miller's contract becomes guaranteed on opening night and Hamilton has a guaranteed $1.1 million coming his way this season with a team option of $2.1 million that must be decided on soon.
James was a longshot to make the roster, but with his rebounding and defensive prowess he had a shot. His limited offensive game and range likely cost him a spot, along with the Nuggets not wanting to give up the talented Miller and the guaranteed deal of Hamilton's.
The roster is now set for the upcoming first game of the season against the Kings on Oct. 30th.