UFC officials confirmed the three-round 185-pound matchup to the Orlando Sentinel on Friday.
Romero (12-2) hasn't fought since he came up short against Robert Whittaker in an interim title fight at UFC 213 in July. Before the loss, Romero had won eight in a row.
Fighting out of American Top Team in South Florida, 40-year-old Romero holds 10 career wins by knockout.
Branch (21-4) is coming off a TKO loss to Luke Rockhold in September. The 36-year-old also saw his winning streak of 11 snapped in that defeat.
Branch fights out of New York City.
The UFC has not yet announced its headliner for the UFC Fight Night event, which will take place at the Amway Center.