Sources have confirmed that verbal agreements are in place for the 205-pound bout. FloCombat.com has also reported the matchup, which will take place inside the Honda Center.
Teixeira (25-5) is coming off a 13-second knockout loss to No. 1 contender Anthony Johnson in August. Prior to that, the Brazilian had won three straight.
Teixeira boasts 15 career knockouts. He has finished seven of his eight UFC wins by either knockout or submission.
Manuwa (16-2) is looking to build on a second-round knockout of Ovince Saint Preux in October. The British slugger has alternated wins and losses in his past five fights.
UFC has not announced a main event for UFC 208.