Diego Sanchez signed a new eight-fight deal with the UFC on Tuesday, clearing the path for a lightweight title bid against B.J. Penn at UFC 107 in Dec. 12 in Memphis, Tenn.

Sanchez’s representation, Jeff Clark of NCFC Management, confirmed the fighter’s re-signing with the promotion.

Once bout agreements are signed, Sanchez vs. Penn is expected to co-headline the December pay-per-view event. A main event pairing Rashad Evans against Quinton “Rampage” Jackson to conclude their turns as rival coaches on Spike TV’s “The Ultimate Fighter 10” has been postponed. A replacement bout has not been announced.

The winner of season one of “The Ultimate Fighter,” Sanchez is on a four-fight winning streak with the promotion. The 27-year-old fighter dispatched Joe Stevenson at UFC 95 last February and Clay Guida, via a close split decision, at “The Ultimate Fighter 9” Finale in June.

Sanchez has only two losses on his docket to Jon Fitch and Josh Koscheck, both by decision in 2007. In his 23 career bouts, Sanchez has never been stopped.

After weeks of speculation, the fight is settled and so is the date.

UFC lightweight champion B.J. Penn will fight Diego Sanchez in the co-main event of UFC 107, which also features a battle between The Ultimate Fighter Season 10 coaches Quinton “Rampage” Jackson and Rashad Evans.

“B.J. is fighting Dec. 12,” UFC president Dana White stated Thursday afternoon in a video blog on BJPenn.com.

White already confirmed the bout a week ago at the UFC 102 pre-fight press conference. At the time, he said there was a chance it would headline an as of yet unannounced third November event that would be neither a pay-per-view nor a Spike TV event, leading to speculation about the oft-rumored network television deal.

Whatever the reason, a third November event has yet to materialize.

White has frequently stated, “Once we get the right offer, we will be on network television.” Apparently the right offer hasn’t yet arrived, or at least not in time for November.

Penn (14-5-1) last fought at UFC 101 where he defeated challenger Kenny Florian, submitting him in the fourth round. The event was the promotion’s first landing in Philadelphia.

Sanchez (21-2), the winner of the inaugural season of The Ultimate Fighter, last competed at The Ultimate Fighter Season 9 Finale, where he defeated the venerable Clay Guida by split decision.

UFC 107 is expected to take place at the FedEx Forum in Memphis, Tenn.

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