Paul was scheduled to face Tyson Fury's brother - Tommy Fury - earlier this year.
However, that bout was ultimately called off after the Brit was refused entry into the United States due to his apparent links to alleged crime boss Daniel Kinahan.
Hasim Rahman Jr - son of former two-time world heavyweight champion Hasim Rahman - stepped in to replace Fury.
That fight was also called off after Rahman was unable to make weight ahead of the cruiserweight bout.
It has now been announced that Paul will return to the ring to fight Silva on October 29.
Bisping has admitted that he "would be devasted" if Paul is able to beat Silva:
"Well, I just hope and pray for the love of God that Anderson Silva doesn't get flatlined," Bisping said via his YouTube channel.
"Jake Paul's got the power, he does, and Anderson Silva has a good chin.
"When he fought Israel Adesanya, Israel hit him with some flush shots, and Anderson just smiled at him.
"When I fought Anderson Silva, I hit him with some great shots again, and he took most of them.
"Granted I dropped him in the first and I dropped him in the second, but I certainly did not knock him out, and at the end of that fight my face was an absolute mess.
"The point I'm making is that Anderson Silva can take a shot, he's still got it, he can land a shot, he's very creative, he's very sneaky, and obviously he just knocked out Tito Ortiz and went the distance with Julio Cesar Chavez Jr.
"I mean experience cannot be bought. There's no-one on this planet who has as much experience as Anderson Silva.
"I hope he makes a ton of money out of this fight, I really do, because he deserves it.
"Anderson Silva is the one taking the risk here. Jake Paul, if he loses to Anderson Silva, it's like hey, you lost to Anderson Silva. Yes, granted some critics might say you lost to a 47-year-old man, but that doesn't matter.
"You know, Jake Paul's young, he'll be afforded that luxury, he'll be afforded that leeway to say, 'You lost to a legend'. If Anderson Silva loses to Jake Paul, I'll be devastated because Jake Paul doesn't deserve to have a victory over Anderson Silva at 47 years old."
47-year-old Silva is the longest reigning champion in the UFC as he held his middleweight belt for over 2400 days.
His last fight in the UFC was in 2020 and he has since returned to boxing.
He went the distance and won on points against ex-world champion Julio Cesar Chavez Jr before he knocked out Tito Ortiz.