The event will take place in Smith's home state of Nebraska, inside Lincoln's Pinnacle Bank Arena.
The 31-year-old Smith (32-14) hasn't fought since he submitted Alexander Gustafsson in the fourth round of a main-event bout in June. Smith, who lives in Omaha, suffered a broken left hand in the fight, sidelining him for the rest of the year.
He is nearly a year removed from a failed title shot against Jon Jones at UFC 235 in March, when he lost via unanimous decision.
Teixeira (30-7) is riding a three-fight win streak -- his longest since 2016. He also fought Jones for the UFC championship, losing by decision in 2014.