The televised event will take place at the Mandalay Bay Events Center one day after a UFC 175 pay-per-view, also in Las Vegas.
It will be the third meeting between Penn and Edgar, but the first at 145-pounds. In 2010, the two fought in back-to-back title fights. Edgar won both via unanimous decision.
Penn, 35, has never fought at featherweight. A former lightweight and welterweight champion, he has one win in his last six fights. Penn (16-9-2) lost his last fight via unanimous decision to Rory MacDonald in December 2012.
Edgar (16-4-1) is coming off a unanimous decision win over Charles Oliveira at UFC 162 in July. The New Jersey native won the UFC lightweight title in his first fight against Penn at UFC 112 and defended it three times.
In February 2012, Edgar forfeited the belt in a narrow decision loss to Ben Henderson. He lost an immediate rematch six months later and dropped to the 145-pound weight class.