The bout will serve as the co-main event of Bellator's inaugural pay-per-view, headlined by Quinton Jackson vs. Tito Ortiz at the Long Beach Arena in Long Beach, Calif.
Last week, MMAFighting.com reported that Alvarez's management was hopeful a settlement could be reached with Bellator, especially considering the fact that the two sides had been mired in a lawsuit, which had a pretrial conference date set for no earlier than Sept. 15, 2014.
Alvarez (24-3) last fought at Bellator 76 in Oct. 2012 when he defeated Patricky Freire via first-round knockout. That was the final fight on his Bellator contract.
"I still lose sleep over my loss to Chandler, and I want it off my record," Alvarez stated in a press release. "This was a long process, but at the end of the day I’m back with Bellator and I’m happy to get back in the cage. I really believe everything happens for a reason, and at the end of the day my family and I are happy, and I’m ready to get my belt back on November 2nd."
"Without sounding too disrespectful, when I fought Eddie the first time in 2011, I didn’t even know what it meant to be an MMA fighter," Chandler said. "Two years later, I’ve grown so much as a mixed martial artist, and there isn’t a doubt in my mind on November 2nd, my hand will be raised and the belt will be around my waist. I have full confidence that I can take this fight wherever I want, whenever I want because I didn’t even show much of my wrestling in that last fight and I was able to beat him just with my standup. My ground game has always been there, and I’ve taken my striking to a whole new level since the last time we met. I feel like I have more experience under my belt, I’m wiser, stronger, and have had so much time in the gym trying to become the best fighter I can be."
The first Alvarez vs. Chandler fight is considered by most to be the best fight in Bellator's four-year history.
The rest of the Bellator pay-per-view card is expected to be announced in the coming weeks.