Werdum captured the heavyweight title from Velasquez at UFC 188 in Mexico City last year, via a third-round submission.
Since then, both fighters have rebounded with victories over Travis Browne. Velasquez (14-2), the two-time former champion, steamrolled Browne for a first-round TKO at UFC 200 and earned a Performance of the Night bonus. Werdum (21-6-1), for his part, scored a unanimous decision over Browne at UFC 203.
UFC 207 will be headlined by Amanda Nunes vs. Ronda Rousey for the UFC women's bantamweight title.
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