A press conference has been scheduled on January 15 to reveal more details, with reports suggesting that Joshua will face Ngannou on Friday March 8 in Riyadh.
Deontay Wilder could feature on the same bill, despite his points loss to Joseph Parker in December which ended hopes of the American fighting Joshua on that date.
Zhilei Zhang’s team have confirmed that talks are being held over a proposed bout against Wilder.
Joshua produced a ruthless fifth round stoppage of Otto Wallin in December, sealing his third straight victory last year
Filip Hrgovic, the IBF mandatory challenger, and Zhang were also considered as potential opponents for Joshua’s next fight.
Ngannou sensationally knocked down Tyson Fury in his first professional boxing bout last October, but Fury emerged with a hotly debated points victory in Riyadh.
The WBC installed Ngannou in their top 10 of title contenders following his creditable defeat.
Saudi Arabia will again stage a major heavyweight fight, just weeks after Fury takes on Oleksandr Usyk in an undisputed world title fight on February 17.
