The eight-round bout will take place in the 84 kg (185 lb) weight category, will be broadcast on the PPV system and have a professional status.
37-year-old Nate Diaz fought last September at UFC 279 in Las Vegas, finishing with a fourth-round guillotine choke to Tony Ferguson, after which he left the strongest league in the world.
26-year-old Jake Paul suffered his first defeat in the professional ring in February of this year, losing by a split decision to British Tommy Fury after eight rounds. Before that, the YouTuber had won six victories, including in confrontations with former UFC fighters Ben Askren, Tyron Woodley and Anderson Silva.