UFC officials have confirmed the 205-pound contest. The UFC pay-per-view event will take place at Ginasio do Maracanazinho in Rio de Janeiro, Brazil.
Teixeira (22-3) suffered a unanimous decision loss to Jon Jones in a five-round title fight at UFC 172 in April. Prior to that defeat, the Brazilian had not lost since March 2005. His UFC record stands at 5-1, with four finishes.
Davis (12-2) will also look to rebound from a deflating decision loss in April. The 29-year-old dropped a unanimous decision to Anthony Johnson at UFC 172, in a bout he had hoped would propel him into title contention.
A former NCAA Division I All-American wrestler, Davis had won three consecutive fights prior to the loss. He has fought twice already in Brazil, including an upset win over former champion Lyoto Machida at UFC 163 last August.