The news of the bout was recently reported by MMAWeekly.
UFC 118 is expected to take place in Boston from the TD Garden on August 28.
A lightweight title rematch between Frankie Edgar and B.J. Penn is slated for the event, along with the MMA debut of James Toney against Randy Couture.
Baroni desperately needs a win coming off of back-to-back defeats at the hands of Joe Riggs and Amir Sadollah while sporting a career record of 13-12, while Salter will be looking to notch his second win with the UFC with an Octagon record of 1-1.