Both sides have verbally agreed to the bout, according to sources. The UFC 223 pay-per-view event will take place inside Barclays Center in Brooklyn.
Pettis (20-7) is looking to rebuild momentum. The 30-year-old lightweight was once considered one of the best fighters in the world, but has struggled to a 2-5 record since 2015.
Fighting out of Milwaukee, Pettis is coming off a submission loss to Dustin Poirier in November.
Chiesa (14-3) made only one appearance in 2017 due to injury. He suffered a submission loss to Kevin Lee in June. Chiesa appealed the result of that fight based on a referee error, but that appeal was denied.
The Washington native had won three in a row prior to that loss.