The lightweight bout was officially announced by UFC president, Dana White.
Tony Ferguson, 39, suffered his sixth straight defeat in July, losing by arm-triangle choke in the third round to fellow countryman Bobby Green.
Paddy Pimblett, 28, is riding a four-fight win streak in the UFC, winning a unanimous decision over American Jared Gordon in his last fight.
Neither fighter is currently ranked in the top 15 of the UFC’s top lightweight division.
The main event of UFC 296 will be a welterweight title fight between Leon Edwards and Colby Covington.