Karl was punished for vehemently criticizing the officiating after Denver's 101-92 loss to the New Jersey Nets. He will begin his suspension Wednesday, when the Nuggets host the New Orleans/Oklahoma City Hornets.
Karl was named the head coach of the Nuggets on Jan. 27, 2005, and helped the team to the playoffs. They were beaten in the first round by the eventual NBA champion San Antonio Spurs.
During his coaching career, Karl has a 748-514 record. He went 32-8 at the helm of the Nuggets last season.
Assistant Coach Scott Brooks was to coach the team for Wednesday's game and for Friday's game at Phoenix.