Lydon, 23, was the No. 24 overall pick in the 2017 NBA draft but never was able to crack the rotation on a deep and talented Denver Nuggets roster.
Lydon's ability to shoot 3-pointers attracted the Kings, who have been on the search for floor-spacers. Teams such as the Los Angeles Lakers and Portland Trail Blazers had discussed trading for Lydon during his second NBA season, but no trade ever materialized, league sources said.
Lydon, who is 6-foot-10, played in 25 games in his second NBA season in 2018-19, after an injury cut short his rookie season to just one game appearance. Lydon played two seasons at Syracuse before entering the NBA draft.