Eddie Alvarez Returns, Will Face Michael Chandler in First Bellator Pay-Per-View

Eddie Alvarez is back in business.

The former lightweight champ, long relegated to the spectator seats because of a protracted legal battle with Bellator, will return to the cage Nov. 2 for a rematch with reigning champ Michael Chandler in the co-main event of Bellator's first pay-per-view event.

USA Today and MMAJunkie.com's John Morgan broke the news Tuesday morning. The story quotes Alvarez as saying "I couldn't be happier right now...I'm happy to put my name on the dotted line and move forward with my career."

It's been a long time coming for the 29-year-old Alvarez (24-3), who has long been considered one of the best lightweights in any MMA promotion. When he steps in the cage against Chandler, he will have lost more than a full year of his prime to lengthy and seemingly acrimonious contract negotiations, which included extensive legal wrangling among Alvarez, Bellator and the UFC, which reportedly offered Alvarez a lucrative contract of its own.

As recently as the spring, a lawsuit between Bellator and Alvarez was expected to go to trial and keep Alvarez out of action until well into 2014. However, with Tuesday's announcement, it seems a settlement was reached.

That's a good thing both for Alvarez and Bellator, which stumbled into public-relations no man's land after booking big but fading stars Quinton Jackson and Tito Ortiz for the main event of Bellator 106, its first pay-per-view event. Adding a title bout between Alvarez and Chandler—the last man to defeat Alvarez—would seem to add much-needed heat to the event.

Chandler (12-0) is becoming a major star in his own right. Most recently, Chandler knocked out David Rickels in the first round to defend his lightweight title for the second time. In November 2011 at Bellator 58, Chandler won the belt with a fourth-round submission of Alvarez. The fight was widely considered to be one of the best of 2011.