With Dallas' loss at Phoenix on Thursday night and the Lakers' Phil Jackson ineligible to coach the team, the Nuggets clinched at least a tie with the Mavericks for the second-best record in the conference through this Sunday's games.
Karl has the tiebreaker over the Mavericks' Rick Carlisle because he coached the East in 2004, and Karl's last appearance came in 1998 for the West. Jackson coached the West last year, making him ineligible for the position this season.
Karl also was the West coach in 1994 and 1996.
The Eastern Conference coach hasn't been decided. Cleveland's Mike Brown coached the team last season, making him ineligible.
The All-Star game is Feb. 14 in Arlington, Texas.