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Semyon Varlamov Traded To Colorado Avalanche In Exchange For Draft Picks In 2012, 2013

UPDATE: Reports have Varlamov signing with the Colorado Avalanche for two years for a total of $5.5 million.

With all of the rumors swirling around goaltender Semyon Varlamov and the possibility of him going to play in the KHL, he's headed to Denver instead.

The Washington Capitals have traded Varlamov to the Colorado Avalanche in exchange for a first-round pick in the 2012 NHL Draft and a second-round pick in either the 2012 or 2013 NHL Draft.

For weeks now, reports surfaced that Varlamov would head to Russia to play for a team in the KHL and a source told ESPN.com Thursday that the Caps did not plan to trade him. Yet, neither of those are true as Varlamov will head to the Avalanche. The Caps and Avalanche have exchanged several players in recent years as Tomas Fleischmann, Scott Hannan and Matt Hendricks have played for both teams.

General manager George McPhee said Tuesday that the Caps would move forward in net with either Varlamov, Michal Neuvirth and Braden Holtby or with just the last two. Neuvirth and Holtby are likely to be the goaltending tandem for Washington next season.