The UFC 225 pay-per-view event is scheduled to take place at United Center. BJPenn.com first reported the targeted bout.
Blaydes (9-1) requested to fight on the card immediately following a victory over Mark Hunt at UFC 221 last month. The 27-year-old is from Chicago, and he attended Harper College in Illinois.
Blaydes is on a four-fight win streak. His only loss in the UFC came against recent title contender Francis Ngannou in 2016.
Overeem (43-16) is looking to reassert himself as a title challenger following a vicious first-round knockout loss to Ngannou in December. Prior to that loss, Overeem had posted back-to-back wins over Fabricio Werdum and Hunt.
A former title challenger, Overeem holds his fight camps in Albuquerque, New Mexico.
The UFC has not yet announced a main event for UFC 225.