Michael Chandler vs. Tony Ferguson announced for UFC 274

Gaethje, Chandler put on fight of the year candidate (0:33)

Justin Gaethje and Michael Chandler kick off the UFC 268 main card with an incredible three-round battle. (0:33)

UFC announced Friday that a lightweight bout between Michael Chandler and Tony Ferguson is being set for UFC 274 on May 7 in Phoenix.

Chandler and Ferguson have verbally agreed to the fight, but bout agreements have not been sent out and nothing has been signed, sources told ESPN.

ESPN has Chandler ranked No. 6 in the world at lightweight. Ferguson is a former UFC interim lightweight champion.

Chandler (22-7) has dropped two fights in a row since winning his UFC debut against Dan Hooker at UFC 257 in January 2021. The Missouri native, though, has lost only to UFC lightweight champion Charles Oliveira and No. 1 contender Justin Gaethje. Chandler, 35, is a three-time former Bellator lightweight champion and was a major free-agent signing for UFC in 2020.

Ferguson (25-6) is on a three-fight losing streak, with defeats against Oliveira, Gaethje and Beneil Dariush. Prior to this current skid, the California native was on a 12-fight winning streak, tied for the longest ever in UFC's 155-pound division. Ferguson, 38, is a former Ultimate Fighter winner and known as one of the most exciting fighters in UFC with six fight of the night bonuses.

UFC 274 will be headlined by a lightweight title fight between Oliveira, the champion, and Gaethje.