Both fighters have verbally agreed to the 205-pound matchup, according to multiple sources. The UFC Fight Night event will take place at Ericsson Globe and air on ESPN+.
Gustafsson (18-5) is coming off a failed title bid against Jon Jones at UFC 232 on Dec. 29. The 32-year-old Swede lost to Jones by TKO in the third round. It was the third time Gustafsson has come up short in a UFC title fight. He's lost to Jones twice, in 2013 and 2018, and Daniel Cormier in 2015.
Fighting out of Stockholm, this will be Gustafsson's first bout in his native Sweden since May 2017.
Smith (31-14) is also coming off a loss to Jones, at UFC 235 last weekend in Las Vegas. The loss snapped a three-fight win streak for Smith, who lives in Omaha, Nebraska.