Iginla had publicly stated he was open to a trade out of Colorado as the Avalanche sit last in the league with a 17-40-3 record and could also deal fellow forwards Matt Duchene and Gabriel Landeskog.
In order to get back to the playoffs, the Los Angeles Kings desperately need more offense, and there are rumors circling that the team is ready to make a big splash to improve offensively before the trade deadline.
Iginla, who ranks 16th on the NHL's all-time goal-scoring list, notched eight goals and 10 assists in his third season with Colorado and 20th overall.
He sent backup netminder Peter Budaj to the Tampa Bay Lightning on Sunday as part of a package deal for Ben Bishop in an effort to sure up the goaltending position with Johnathan Quick's recent return from a groin injury.
Iginla, 39, said early in February that he desired to play for a Stanley Cup-contending team this season. The Kings acquired the pick after trading left wing Dwight King to the Montreal Canadiens.
Iginla signed with Colorado for a three-year $16M contract after a brief stint with Pittsburgh following the 2013-14 season. He came closest in 2004 when he led the Calgary Flames to Game 7 of the Stanley Cup Finals with 13 goals and 22 points.
King played a variety of roles for the Kings, but mostly he was a physical presence. The Kings (69 points) are chasing Calgary (72 points) and St. Louis (67 points) for the Western Conference wild card spots.
Iginla will debut for the Kings Thursday night against the Toronto Maple Leafs.