The fight, which takes place in Fort Campbell, Ky., will be Machida's first at 185 pounds. He and Kennedy will headline the UFC Fight Night 31 event, which is also being billed as UFC Fight for the Troops 3.
Machida will look to get back in the win column after suffering a unanimous-decision loss on Aug. 3 to Phil Davis. The former UFC 205-pound champion, who is ranked fourth among light heavyweights with Davis, has a professional record of 19-4. However, Machida is 3-4 in his past seven fights.
During his first seven fights in UFC, Machida dominated every opponent, capping that run with a second-round knockout of Rashad Evans in May 2009 to become light heavyweight champion. He had not lost a round inside the Octagon during that span.
But in his first title defense against Mauricio Rua at UFC 104 in October 2009, Machida found the going rough. Despite his difficulties, Machida was awarded a unanimous decision. Many observers disagreed with the judges' ruling.
However, Machida's title reign was brief. In his second title defense, a rematch with Rua at UFC 113, Machida was knocked out in the first.
Kennedy makes his second UFC appearance. In his promotion debut on July 6, he defeated Roger Gracie by unanimous decision.
Kennedy, a former Strikeforce No. 1 middleweight contender who currently serves in the United States Army, will enter the cage Nov. 6 on a two-fight win streak. His record is 16-4.