UFC officials announced the bout on Thursday.
Fighting out of Cambridge, Barnatt (6-0) will be competing on his home turf for the event.
He made his way to the Octagon via The Ultimate Fighter: Team Jones vs. Team Sonnen. Although Barnatt lost in the quarterfinal round of the reality series, he bounced back at the finale, earning a unanimous decision victory over Collin Hart.
Craig (9-1) was called by the UFC as late replacement for Jared Hamman. It proved to be a golden opportunity for the Texan, as he upset Kyle Noke at UFC on FX 2.
He lost via decision to Ronny Markes earlier this year, but rebounded with a victory over Chris Leben in May. Craig is currently 3-1 during his UFC tenure.