Diego Sanchez signed a new eight-fight deal with the UFC on Tuesday, clearing the path for a lightweight title bid against B.J. Penn at UFC 107 in Dec. 12 in Memphis, Tenn.

Sanchez’s representation, Jeff Clark of NCFC Management, confirmed the fighter’s re-signing with the promotion.

Once bout agreements are signed, Sanchez vs. Penn is expected to co-headline the December pay-per-view event. A main event pairing Rashad Evans against Quinton “Rampage” Jackson to conclude their turns as rival coaches on Spike TV’s “The Ultimate Fighter 10” has been postponed. A replacement bout has not been announced.

The winner of season one of “The Ultimate Fighter,” Sanchez is on a four-fight winning streak with the promotion. The 27-year-old fighter dispatched Joe Stevenson at UFC 95 last February and Clay Guida, via a close split decision, at “The Ultimate Fighter 9” Finale in June.

Sanchez has only two losses on his docket to Jon Fitch and Josh Koscheck, both by decision in 2007. In his 23 career bouts, Sanchez has never been stopped.