Contracts have not been signed, but verbal agreements are in place, sources said. The bout will take place at UFC 263 at a location to be announced.
Maia (28-10) has not fought since he suffered a knockout defeat to Gilbert Burns in March 2020. The 43-year-old Brazilian has discussed potential retirement in recent years but immediately expressed his desire to compete at least one more time after his loss to Burns.
Muhammad (18-3), of Chicago, is coming off a disappointing no-contest in his first-ever UFC main event against Leon Edwards on March 13. The fight ended in a no-contest when Muhammad was unable to continue after suffering an accidental eye poke in the second round. Muhammad campaigned for a rematch against Edwards, but Edwards has booked a fight against Nate Diaz in May.
Prior to the no-contest, Muhammad was on a four-fight win streak. He accepted the bout against Edwards on short notice, after Edwards' original opponent, Khamzat Chimaev, withdrew because of medical issues caused by COVID-19.