UFC Atlantic City will take place at the Boardwalk Hall.
Bahadurzada (23-6-1), a former champion inside the Shooto ring, is coming off back-to-back stoppage wins over Rob Wilkinson and Brandon Thatch, improving to 3-2 under the UFC banner. His first win came with a 2012 knockout over Paulo Thiago, stopping him in just 42 seconds.
Chagas (15-2-1) recently scored his first victory inside the Octagon, tapping Jim Wallhead at UFC 212 last June. Chagas, who now holds a 1-1-1 UFC record with a loss to Erick Silva and a draw against Sergio Moraes, is coming back to action after being pulled from a fight with Niko Price in October due to a broken foot.