White broke the news to ESPN on Sunday. The UFC 235 pay-per-view is scheduled to take place at T-Mobile Arena in Las Vegas.
Garbrandt (11-2) is coming off back-to-back losses to current 135-pound champion TJ Dillashaw. Garbrandt, of Uhrichsville, Ohio, won the title by defeating Dominick Cruz in December 2016, but surrendered the belt to Dillashaw in his first attempted defense.
The 27-year-old has been limited to just two appearances in the last two years, due to back and hand injuries. He trains out of Team Alpha Male in Sacramento.
Munhoz (17-3) is coming off a first-round finish against Bryan Caraway in November. The 32-year-old Brazilian has won six of his last seven fights.
A light heavyweight title fight between Jon Jones and Anthony Smith is expected to headline UFC 235, pending Jones' license application in the state of Nevada. Welterweight champion Tyron Woodley is also scheduled to defend his title against Kamaru Usman on the card.