ESPN.com confirmed the 135-pound contest with UFC officials on Wednesday. The fight will take place on the main card of the UFC 175 pay-per-view in Las Vegas.
Faber (30-7) is coming off a TKO loss to Renan Barao in the first round of a title fight at UFC 169 in February. It was the first time Faber had been stopped since a TKO loss to Mike Brown at WEC 36 in November 2008.
Prior to the loss, Faber, 35, had won four in a row. He is 6-3 overall in the UFC, with three losses occurring in title fights. He is the No. 2 ranked bantamweight in the world, according to ESPN.com.
A former contestant on The Ultimate Fighter, Caceres (10-5) enters the bout on a four-fight win streak. An additional win over Kyung Ho Kang in March 2013 was changed to a no-contest when he tested positive for marijuana.
Caceres, 25, scored a third-round submission win over Sergio Pettis in January.
According to sources, he specifically asked the UFC to fight Faber next.