Brown, 36, needs a win badly as he is on three-fight losing streak, losing by TKO to Donald Cerrone at UFC 206 in his last bout.
Sanchez,35, is also looking to rebound from a TKO loss to Al Iaquinta at UFC Fight Night 108 in April.
UFC Fight Night 120 is scheduled for Nov. 11 at the Ted Constant Convocation Center in Norfolk, Virginia.
The card currently includes:
Anthony Pettis (20-6-0) vs Dustin Poirier (21-5-0)
Karl Roberson (5-0-0) vs. Darren Stewart (7-1-0, 1NC)
Cezar Ferreira (11-6-0) vs Nate Marquardt (35-18-2)
Diego Sanchez (27-10-0) vs Matt Brown (20-16-0)
More bouts are expected to be announced.