The Mississippi Athletic Commission has granted a boxing license to Antonio Margarito and by extension cleared the way for the former welterweight champion to possibly fight four-time world champion Miguel Cotto on Dec. 3 at the DeSoto Civic Center in Southaven, Miss., an industry source told CBSSports.com on Thursday.
The fight would be televised by HBO PPV.
SI.com's Chris Mannix reported earlier Thursday that the New York State Athletic Commission planned to reject Margarito's license application, which would effectively force the highly anticipated rematch away from New York's Madison Square Garden.
The New York State Athletic Commission originally denied Margarito a license last month because of issues with an eye injury the Mexican star suffered in a 2010 loss to Manny Pacquiao.
A source told CBSSports.com that doctors in Mississippi have examined Margarito's eye and given him the OK to fight in their state, and that the championship event is "really close" to being moved to the DCC.
A formal announcement could be made by the end of the day.
Cotto (36-2) and Margarito (38-7) first fought in 2008. Margarito won that brutal fight by TKO in the 11th round of one of the Fights of the Year.