The fourth year is a team option.
Beasley was a restricted free agent, meaning the Wolves had the right to match any offer for him.
Beasley was part of the mammoth four-team, 12-player trade in February that sent Robert Covington to the Houston Rockets and Clint Capela to the Atlanta Hawks. At the time, the Wolves viewed him as a quality fit around All-Star center Karl-Anthony Towns with the hopes of signing him to a new deal in the offseason.
The change of scenery proved a big boost to Beasley's production.
He averaged 33 minutes in 14 games with the Wolves, almost twice as many as he averaged in three and a half seasons with the Nuggets. The result was career highs in points (20.6), rebounds (5.1), field goal percentage (47.2) and 3-point shooting (42.6%).
He also made 3.5 3-pointers per game with Minnesota after going for 1.4 per contest with the Nuggets, who selected him with the 19th overall pick in the 2016 draft out of Florida State.
But Beasley's time in Minnesota hasn't been all smooth sailing. He is facing felony weapons and drug charges stemming from a September arrest in Minneapolis.