MMA Weekly first reported that the bout has been agreed to by both parties Monday afternoon.
UFC 120 is scheduled for October 16. It will mark the organization's fourth event at the O2 Arena in London, England.
After winning his first four UFC fights in a row, Hardy (23-7) dropped a unanimous decision to 170-pound champion Georges St-Pierre in March. His UFC wins came against Akihiro Gono, Rory Markham, Marcus Davis and Mike Swick.
Condit (25-5) most recently defeated Rory MacDonald at UFC 115 earlier this month in Vancouver, B.C. "The Natural Born Killer" appeared to be en route to a loss, but he turned things around in the third round, and stopped MacDonald with just 7 seconds remaining. The win improved his UFC record to 2-1. He lost his debut to Martin Kampmann and defeated Jake Ellenberger.
No other fights have been officially added or rumored for the card, however, Michael Bisping is expected to be a part of it.
The organization is also expected to hold it's first-ever European Fan Expo prior to UFC 120. The event will air for free on Spike TV in the United States.