Multiple sources confirmed to ESPN.com both sides have verbally agreed to the matchup and it should become official shortly. The bout will take place at T-Mobile Arena.
UFC 207 is shaping into a huge night for the UFC's bantamweight divisions. In the main event, former female champion Ronda Rousey will attempt to reclaim her title against Amanda Nunes. And in the co-main event, Dominick Cruz defends the title against Cody Garbrandt.
Dillashaw (13-3) had campaigned for a rematch against Cruz, whom he lost to via split decision in January. He even went so far as to challenge Cruz to a $100,000 side bet in the fight.
Despite Dillashaw's victory over Raphael Assuncao at UFC 200 in July, the promotion opted to go with the undefeated Garbrandt (10-0) in next month's title fight.
According to sources, Dillashaw recently restructured his UFC contract at his request.
Lineker (29-7) is 4-0 since moving up from the flyweight division last year. His only setback came on the scales, as he missed weight prior to defeating John Dodson last month.
The 26-year-old knockout artist has a 10-2 overall UFC record.