The duo will meet in the main event of a UFC Fight Night card on June 20 in Berlin, Germany. UFC president Dana White confirmed the rumors of the bout in a video interview with the U.K. website MMA Crazy at a Monday press event in London.
"It's true, I'm confirming it is true," White said.
The 28-year-old Gustafsson (16-3) is coming off an upset, first-round TKO loss to Anthony Johnson in Gustafsson's hometown of Stockholm on Jan. 24.
Teixeira, the 35-year-old Brazilian, meanwhile, dropped consecutive bouts after winning 20 in a row. He dropped decisions to UFC light heavyweight champion Jon Jones and to Phil Davis. Teixeira was scheduled to meet Rashad Evans on Feb. 22, but pulled out due to a knee injury.
On Monday's edition of The MMA Hour, Gustafsson, while not outright confirming the Teixeira fight, did hint that he considered Teixeira a solid choice for his next opponent.
"Glover is a great opponent, he's a tough fighter," Gustafsson said. "I think he'd be an exciting fight. We're both great fighters, we're both strikers, and I think he'd be a great fight to see."