The 12 January fixture is the first time either side has played overseas during the regular season.
Indiana lost in the first round of the play-offs last season, while the Nuggets failed to make it out of the Western Conference.
The Toronto Raptors beat Orlando Magic 106-103 in January at the O2.
The first regular-season game to be staged in the UK was the New Jersey Nets' 116-103 success over the Raptors in March 2011.
The Denver Nuggets will play the Indiana Pacers at London's O2 Arena in the seventh regular-season NBA game to be played in the United Kingdom.