The unrestricted free-agent right-winger signed a reported three-year deal with the Avalanche on Tuesday after scoring 30 goals this past season with the Boston Bruins.
Iginla, who split the 2012-2013 campaign with the Calgary Flames and Pittsburgh, joins his third team in as many seasons.
The talk was the one-time Flames captain would stay in Boston on a one-year deal but wanted at least a two-year pact elsewhere.
A six-time all-star, the 37-year-old Iginla is fresh off a 61-point season with the Bruins and added five goals in 12 playoff contests.
He's led the league in goals twice and has 560 in his career with Calgary, Pittsburgh and Boston.
Earlier Tuesday, Colorado lost free-agent forward Paul Stastny, who signed a four-year deal with St. Louis reportedly worth $28 million US.