The Las Vegas Sun first reported the bout for the August 17 card from Boston.
Faber (28-6) will look to remain at the top of the list in terms of UFC contenders, and earn a third submission win of the year. He has tapped both Scott Jorgensen and Ivan Menjivar already.
Alcantara (28-4) has gone 3-1 inside the Octagon, including a knockout of Iliarde Santos.
Faber joins the likes of Alistair Overeem, Joe Lauzon, Matt Brown, Uriah Hall and Travis Browne on the FOX Sports 1 debut card. No main event has been reported to date.