The fight, which is being dubbed the 'War of the Roses', is due to take place in Sheffield on March 17.
"This is a fight I've wanted for a long time and to get it at the Sheffield Arena means the world to me," said Brook. "When I first sat down with Eddie, he told me that his vision was a sell-out night at Sheffield Arena and now we're here.
"It is a competitive division and we're both trying to achieve the same goal, so I know that by putting him out of the equation, it gives me a clearer run at the title. I want people to stand up and take notice of me and these are the kind of nights that makes that happen.
"We've been looking at fights here and in the US but this is the one that gives me the buzz. I know I'm comfortably the best welterweight in Britain and I'm going to put in a devastating performance on March 17 to show the world just that."
Brook, who is undefeated, is ranked in the top ten of welterweights, while former European champion Hatton will try to overcome last year's WBC light-middleweight title defeat.