Cerrone had been vocal about fighting former UFC lightweight and featherweight champion Conor McGregor, but the promotion went a different direction. Cerrone (35-11-1) is coming off two straight wins, most recently a dominant second-round TKO win against rising prospect Alexander Hernandez in January.
Iaquinta (14-4-1) has won six of his past seven matchups. The New York native most recently defeated Kevin Lee by unanimous decision in December.
"I just think it's a great fight," Iaquinta told ESPN. "I've been watching Cowboy since his WEC days. I like these fights, fighting guys I came up watching and always wondering how I would do against them, thinking I could beat them. I have a lot of respect for Cowboy.
"There are a lot of big fights coming up in this division. Anybody could get a big win and see their stock skyrocket."