The 33-year-old Nigerian-American star, who was making his second title defence, was initially scheduled to face Gilbert Burns at the event on 'Fight Island.'
But Burns was pulled out of the headline clash after testing positive for coronavirus and replaced by Masvidal on six days' notice.
However, ESPN's Marc Raimondi now reports that the 'Nigerian Nightmare' has been handed down a 180-day suspension "due to the potential of a broken nose."
Usman, who is undefeated in UFC, could return to the octagon sooner should a doctor clear him after a nasal X-ray.
Masvidal, meanwhile, is reportedly set to receive a 30-day suspension due to a forehead laceration.
The 35-year-old UFC star has wasted no time in expressing his desire to return to the octagon and face Usman in a rematch.
"I want that damn belt, and I'm stubborn," Masvidal told ESPN.
"And I know I'm better than Usman, and I want to prove it. I want to fight again. I'm not going to take nothing from him; he won the first one. Let's do it again."
However, UFC president Dana White has dismissed the idea that an immediate rematch between Masvidal and Usman could be set up.
According to White, UFC is planning for Usman to defend his championship title against Burns next.
"He's the No 1 contender," the UFC chief told MMA Junkie.
"He's the No 1 ranked guy in the world. Yeah -- he's the No 1 guy in the world. The kid is hungry. He wants to fight. He wants to be a world champion -- and he's No 1.
"Yeah, that puts him in a pretty good spot."
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