UFC officials announced the 125-pound contest on Tuesday. The event takes place at the Frank Erwin Center at the University of Texas and will air on Fox Sports 1.
Benavidez (20-4) is coming off a submission win over Tim Elliott in the first round of a dominant performance at UFC 172 in April. The Sacramento-based flyweight is 7-2 overall in the UFC, with both losses coming to Demetrious Johnson in title fights.
ESPN.com ranks Benavidez, who was born in Texas, the No. 3 flyweight in the world.
Fighting out of Franklin, Tennessee, Ortiz's last two victories have come via split decision. His only loss in the UFC was a controversial split decision to John Moraga in January.