Sources close to the match-up confirmed to MMAWeekly.com that the bout has been verbally agreed by the participants for the show taking place Feb. 26 at Saitama Super Arena in Japan.
After several years in promotions like Sengoku and Shooto, Hioki finally made his UFC debut in October. While it was close, he was able to pull out a split decision victory over George Roop.
Hioki has now won five fights in a row, and looks to put his name in the hat as a title contender with his fight in February.
Looking to do the exact same thing is former WEC competitors Bart Palaszewski, who makes his second appearance in the featherweight division after a long career at lightweight in several promotions.
Palaszewski last fought at UFC 137, the same show as Hioki, where he blasted through Tyson Griffin with a first round knockout.
The Team Curran fighter will now travel to Japan to try and beat Hioki in his home country, where he has competed most of his career.