The matchup was originally scheduled for UFC Fight Night in Manila on Saturday, but that card was canceled last week after main event competitor B.J. Penn withdrew from the card due to injury. All fighters from the card are expected to rebooked at future events.
UFC Fight Night takes place at Mexico City Arena on Nov. 5 and is headlined by a lightweight showdown between Rafael dos Anjos and Tony Ferguson. The main card airs on Fox Sports 1, with prelims on both FS1 and UFC Fight Pass.
Alvey has already fought four times in 2016 and is coming off back-to-back finishes of Kevin Casey and Eric Spicely. Nicholson earned his first Octagon triumph with a first-round knockout of Devin Clark at UFC Fight Night in Sioux Falls on July 13.