Atlanta must also consider the future of starting point guard Dennis Schroder, who hinted heavily to German media in May that he would prefer to be traded.
Lin told the Nets website earlier this week that he has yet to participate in full-contact drills as he rehabs the injury. The Nuggets will receive Isaiah Whitehead in the deal. He has said he expects to be ready for training camp.
Lin, who was on an expiring $12.5 million contract, hasn't played since rupturing his patellar tendon during the opening game last season.
Lin, headed to his seventh National Basketball Association team as he prepares to enter his ninth season, now joins a roster that includes two notable point guards, No. 5 overall pick Trae Young and veteran Dennis Schroder.
The trade with the Nuggets was a salary dump for Denver.
The Nets are at the center of two trades as they will send Jeremy Lin to the Hawks and move Isaiah Whitehead to the Nuggets in exchange for Kenneth Faried, Darrell Arthur, a 2019 protected first-round pick and a future second-round pick, Adrian Wojnarowksi of ESPN.com reports.
Arthur, 30, got in just 30 contests in 2017-18, making one start. The Coney Island native averaged 6.3 points and 1.3 assists in 16 games last season, spending much of the year in the G League. He produced 2.8 points in 7.4 minutes per game.