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The YouTube star will make the fight announcement tomorrow ahead of a face-off in Miami to promote the event.
The proposed showdown between Paul and Woodley is set to headline a major fight card on Showtime.
'The Problem Child' last fought in April when he beat Ben Askren in one round.
Woodley, meanwhile, hasn't fought since his submission defeat to Vicente Luque at UFC 260 back in March.
He fought out his UFC contract - with the 39-year-old walking away from the promotion having lost his last four fights inside the Octagon.
Ever since Paul vs. Askren, 'The Chosen One' has eyed a fight against the 24-year-old budding boxing star.
Speaking last month, he told TMZ Sports: "Jake Paul is - well I guess we kind of recognise he came from Disney - but we're expecting him to be like this f**king macho macho man he's playing but he's calling out everybody but me.
"That was his opportunity so everybody backstage is trying to get love and trying to get their name - almost the same way Jake took the shine away from Logan.
"They're just Culture Vultures. He would vulch the juice from his own damn flesh and blood. His cornerman trying to take the juice from him. His whole crew moves goofy. My dogs don't move like that.
"I was in the gym today in Miami training, looking around for Jake Paul, I ain't seen him nowhere. He ain't asked to fight me one time.
"He want to fight Dillon Danis who couldn't bust a grape in a fruit fight or Tyson Fury's cousin but he don't want to fight a real puncher.
"He wants to walk around and vulch from the culture and suck it dry and walk around and take shots with rappers and think you're a big shot fighter.
"Nah, come and get this smoke for real."
Featured Image Credit: PA/Jake Paul
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