It's actually a kickboxing fight that's going to happen in Macau, China...here's a short article I found on MMA Convert:

Van Damme Confirms Kickboxing Match
By Steve Barry
January 27th, 2010

Jean Claude Van Damme has confirmed he will compete in a real kickboxing match against Olympic Thai boxer Somluck Kamsing.

[Fighting Kamsing] is kind of dangerous, but life is short and I want to do this fight… to prove to young people, and even to mature people, that a man can go into some very strong physical effort, training, and everything and also be a movie star.

Kinda sounds like Herschel Walker, minus the movie star part of course. Van Damme plans to make the most of putting his aging body on the line too. The fight is actually part of bigger plan that includes three reality shows — two related to movies and one related to the fight — which will culminate in the release of his movie The Tower and then the broadcast of the Kamsing fight from Macau, China