The UFC was hoping to book the fight as the main event for UFC 228 on Sept. 8 in Dallas, however, due to undisclosed reasons Covington is unable to compete on that date, sources told ESPN.
As a result, the UFC is currently discussing booking a Woodley-Darren Till title bout and potentially stripping Covington of the interim title, additional sources said.
Covington won the 170-pound interim title at UFC 225 in June by defeating Rafael dos Anjos via unanimous decision. The creation of the belt was controversial considering Woodley fought four times in a year and said publicly that he was ready to return in the summer following shoulder surgery.
Woodley's team could not be reached for comment when contacted by ESPN.
As of Thursday morning, no final decision has been made regarding the welterweight title picture and the promotion has yet to officially book a main event fight for UFC 228.