The bout will headline Bellator 58 at Seminole Hard Rock Hotel and Casino in Hollywood, Fla.
In the co-main event, Bellator middleweight champ Hector Lombard will face Trevor Prangley in a nontitle catchweight bout.
Alvarez was scheduled to meet Chandler Saturday at Bellator 54 in Atlantic City, N.J., but he withdrew from the fight because of an undisclosed injury.
Ranked No. 3 among lightweights by ESPN.com, Alvarez (22-2) will be making the second defense of his title, entering the cage on a seven-fight winning streak.
Chandler (8-0) earned the title shot in May with a unanimous decision over Patricky "Pitbull" Freire. The win over Freire came in the Bellator Season 4 lightweight tournament final.
Franklin McNeil covers mixed martial arts and boxing for ESPN.com. Follow him on Twitter at www.twitter.com/Franklin_McNeil.