The 205-pound fight is slated to be on the main card June 14 at Rogers Arena. The main event has Demetrious (Mighty Mouse) Johnson defending his flyweight title against No. 4 contender Ali Bagautinov of Russia.
Bader (17-4) is 9-4 in the UFC with the losses coming to elite fighters in Jon (Bones) Jones, Tito Ortiz, Lyoto (The Dragon) Machida and Glover Teixeira.
Most recently he won a decision over Anthony Perosh.
Winner of Season 8 of "The Ultimate Fighter," Bader is ranked No. 9 among light-heavyweight contenders.
Cavalcante (12-4 with one no contest) is 1-1 in the UFC since coming over from Strikeforce where he briefly held the light-heavyweight belt.
The 34-year-old Cavalcante, ranked 12th among 205-pound contenders, is coming off a first-round submission win over Igor Pokrajac in November.
The fighters have verbally agreed to the bout, which was confirmed by a source.