Diego Sanchez signed a new deal with the UFC and is set to fight Michel Pereira in a welterweight bout at UFC Rio Rancho on Feb. 15, promotion officials announced Wednesday.
Rumors circulated that Sanchez, the winner of "The Ultimate Fighter 1," had parted ways with the promotion. Sanchez confirmed in October he was indeed a free agent but still had hopes he would remain under the UFC banner.
In his last fight, the "Nightmare" suffered a one-sided loss to Michael Chiesa at UFC 239 in July. The defeat snapped a two-fight winning streak, which included a TKO of Mickey Gall.
Sanchez, 37, has competed for the UFC since 2005. He started out as a middleweight and has since made runs as a welterweight, lightweight, and featherweight. He owns an 18-12 UFC record.
Sanchez was inducted into the UFC Hall of Fame this past summer for his classic fight against Clay Guida in 2009.
Known for his flashy style, Pereira scored an epic knockout win over Danny Roberts in his Octagon debut in May. However, in his last fight, he suffered a decision loss to Canadian newcomer Tristan Connelly at UFC Vancouver. Connelly stepped up on less than a week's notice for the bout and was a massive underdog.
UFC Rio Rancho will be headlined by a light heavyweight bout between Corey Anderson and Jan Blachowicz.