The news of the bout comes according to a report from MMAJunkie.com.
The fate of the fight is hinged on the commission’s ruling for Diaz’ role in the now famous brawl at Strikeforce: Nashville.
Diaz is coming off a victory in his debut at welterweight against Rory Markham at UFC 111. Despite Markham having a seven pound weight advantage due to missing weight, Diaz was easily able to finish Markham off in the first round. Diaz has stated that he has wanted to fight at both welterweight and lightweight in the future.
Davis is coming off of a hard-earned victory at UFC 113 against Jonathan Goulet. Davis finished Goulet with strikes in the second round, avoiding the possibility of losing three straight fights. Davis also went 17-1 as a professional boxer before entering MMA.
UFC 118 takes place on August 28 and will emanate from the TD Garden in Boston, Massachusetts.