Verbal agreements are in place for the 135-pound bout, according to sources. The UFC Fight Night event will take place inside Times Union Center.
The televised event will mark the UFC's second trip to New York in less than one month. The organization also is scheduled to hold a historic UFC 205 pay-per-view event at Madison Square Garden on Nov. 12. It's the first UFC event in the state since 1995.
Assuncao (23-5) is coming off a decision loss to TJ Dillashaw at UFC 200 in July. The 34-year-old came off a nearly two-year injury layoff.
Sterling (12-1) suffered his first loss in May, via split decision to Bryan Caraway. The New York native holds a 4-1 overall record in the UFC.