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Published 12:46 4 Feb 2016 GMT
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MMAFighting's Ariel Helwani reported the update on UFC Tonight but was unable to reveal the comeback opponent for 'The Prodigy.'
All signs, though, point to fellow veteran Dennis Siver.
Penn has campaigned for a fight against ranked featherweight Nik Lentz, who categorically turned down the chance to make a serious payday against the Hawaiian.
Siver is thought to be the top candidate to welcome 'The Prodigy' back to the octagon where he hasn't fought since retiring in 2014, after losing three consecutive fights for the first time in his career.
Frankie Edgar was the man who handed him his final defeat, but Penn has claimed to have found a new lease of life under the tutelage of Greg Jackson.
Siver is also riding a losing streak, having been beaten by Tatsuya Kawajiri and Conor McGregor in his last two outings.
If confirmed, it will be a fascinating stylistic match-up as Penn was famously one of the fastest men to earn a black belt in Brazilian Jiu-Jitsu (just over three years) while Siver holds a very respected black belt in Taekwondo.Record breaking sum referees set to earn at World Cup
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