The Las Vegas Sun first reported the news on Friday and UFC officials confirmed the match-up.
Cerrone (20-6, 1 no contest) is coming off a decision loss to Rafael dos Anjos on Aug. 28 at UFC Fight Night 27.
Dunham (14-4) is also coming off a decision loss to dos Anjos, and neither fighter wants to notch back-to-back losses.
UFC 167 takes place on Nov. 16 at the MGM Grand Garden Arena in Las Vegas and is headlined by a welterweight title bout between champion Georges St-Pierre and Johny Hendricks. Light heavyweights Rashad Evans and Chael Sonnen face off in the co-main attraction.
A heavyweight match-up between former champion Frank Mir and Alistair Overeem was added to the growing fight card on Thursday. The event also features a couple of welterweight bouts with title shot implications: Rory MacDonald vs. Robbie Lawler and Josh Koscheck vs. Tyron Woodley.
UFC 167 is the UFC’s 20th anniversary event.