From Chris Tomasson's Twitter:

Agent Bill Duffy tells FanHouse Nuggets won't match four-year, $18.8 million offer sheet by Toronto on Linas Kleiza. Story in a few minutes. - http://twitter.com/christomasson/status/18664009246

I suppose it wasn't that big of a surprise at this point, but since we own Kleiza's Bird Rights, he was one of the best remaining Free Agents that we could've brought to Denver. Even if he's not really the greatest player out there, we only have the BAE left, so that restricts the players we can grab.

Personally, I'm fine with letting him walk. That's quite a bit more money and years than I think we should pay a guy like Kleiza, who we no longer really need, and our money is best spent elsewhere.

EDIT: Here's the link to the article: http://nba.fanhouse.com/2010/07/16/nuggets-wont-match-offer-sheet-on-linas-kleiza/