Sportsnet.ca is reporting that Chael Sonnen will fight Nate Marquardt at UFC 110 in Sydney, Australia.

Nate Marquardt (29-8-2)  recently knocked out Demian Maia at UFC 102. That victory propelled Marquardt into title contention though Anderson Silva's camp claimed that Marquardt wasn't worthy of a title shot and requested that Marquardt should fight Dan Henderson.

Chael Sonnen (24-10-1) was the last WEC middleweight champion though his return to the UFC got off to a slow start as he dropped a fight to the aforementioned Demian Maia. Sonnen rebounded with two solid victories over Dan Miller and Yushin Okami.

The report of Marquardt vs. Sonnen also sheds some light on the UFC's strategy within the middleweight division. First of all, it solidifies the potential title fight between Anderson Silva and Vitor Belfort. While Marquardt was always a dark horse candidate, Silva's camp did make waves about Vitor, claiming that Belfort hasn't earned a title shot. 

By scheduling Nate Marquardt it appears that the UFC has officially moved on from Dan Henderson. Many observers assumed that Marquardt and Henderson would fight for the right to face the winner of Silva vs. Belfort. However, Dana White claimed that Henderson has signed with Strikeforce --Dan's camp insists that Henderson is still a free agent-- this development may be another example of the UFC attempting to force Henderson's hand; that he should go to Strikeforce or take the UFC's initial offer.

[Update: Note by Zak Woods, 11/20/09 7:51 PM EST ]

Sonnen vs. Marquardt was moved to UFC 109.