The event is expected to take place from the Mandalay Bay Events Center in Las Vegas on November 21.
Both fighters have agreed to the contest and at least one has signed the contract for the bout according to a report from MMAJunkie.com.
Davis recently dropped a hard fought split decision to Dan Hardy at UFC 99. Prior to the loss Marcus had compiled back to back victories in the Octagon over Paul Kelley and Chris Lytle.
The sole defeat in the career of Saunders came in his last bout against Mike Swick during UFC 99 where he was TKO’d in the second round. Before the recent loss he had strung together three straight wins with the UFC.
A full list of the bouts expected for UFC 106 are listed below:
Brock Lesnar vs. Shane Carwin
Mark Coleman vs. Tito Ortiz
Kenny Florian vs. Clay Guida
Ricardo Almeida vs. Jon Fitch
Dustin Hazelett vs. Karo Parisyan
Phil Baroni vs. Amir Sadollah
Marcus Davis vs. Ben Saunders