Sources confirmed verbal agreements for the bout are in place. The UFC Fight Night event will take place at Target Center and air on ESPN.
Woodley (19-4-1) surrendered the UFC's 170-pound title in a decision loss to Kamaru Usman at UFC 235 earlier this month in Las Vegas. That 36-year-old native of Ferguson, Missouri, was unbeaten in seven consecutive bouts prior to the loss.
Earlier this year, Woodley had entertained the idea of moving up in weight, but he is now focused on regaining the welterweight belt.
Lawler (28-13) is coming off a controversial submission loss to Ben Askren at UFC 235. The bout was stopped in the first round when Askren caught Lawler in a bulldog choke; however, replays showed Lawler might still have been in the fight when it was called off.
Fighting out of Fort Lauderdale, Florida, Lawler missed all of 2018 due to ACL surgery.
The 170-pound bout is a rematch of a 2016 title fight. Woodley claimed the belt in a first-round knockout at UFC 201 in Atlanta.