The fight between Faber and Menjivar will be a rematch of their January 2006 showdown, where Faber was declared the winner after Menjivar was disqualified due to an illegal kick.
In his most recent bout, on July 21, Faber lost by unanimous decision to Renan Barao in a bantamweight interim title fight.
"I'm excited to fight Ivan," Faber told ESPN.com Wednesday. "We have unfinished business from the last time we fought in 2006. We both have changed as fighters. I won by disqualification, but the fight was really close. That fight hasn't been finished."
Faber had been scheduled to face UFC lineal bantamweight champion Dominick Cruz for the title on July 7. That fight, however, was called off after Cruz tore an anterior cruciate ligament in May during a training session.
A former WEC featherweight champion, Faber is 26-6 as a pro. He is 3-2 since dropping to bantamweight in November 2010.
Menjivar (25-9) earned submission-of-the-night honors Nov. 17 when he finished Azamat Gashimov in the first round at UFC 154 in Montreal.