Officials confirmed the bout to ESPN on Tuesday. The televised event will take place at Save Mart Center.
Caraway (21-7) is the No. 10-ranked bantamweight in the world, according to ESPN. He has won four of his last five, including a split decision over rising contender Aljamain Sterling in May 2016.
Caraway, 33, was supposed to face the undefeated Jimmie Rivera in January, but was forced to pull out due to injury. Rivera went on to defeat Thomas Almeida this summer and is currently booked against former champion Dominick Cruz in December.
Fighting out of Las Vegas, Caraway is 6-2 overall in the UFC.
Sanders (11-1) is coming off the first loss of his career, a kneebar to Iuri Alcantara in March. He was supposed to fight Felipe Arantes last month, but Arantes withdrew late. Sanders, 31, trains out of the MMA Lab in Glendale, Arizona.