The town hall, which will be held in Detroit and moderated by Bret Baier, will include separate forums with each candidate before an audience of Michigan voters.
Fox News announced on Thursday that Sanders would participate in the event, but Clinton was unable to attend due to a scheduling conflict.
Michigan’s presidential primary is Tuesday.
Baier anchors the weeknight “Special Report With Bret Baier” on Fox News and co-moderated the GOP debate Thursday night with Megyn Kelly and Chris Wallace.
Fox News has not yet sponsored any Democratic presidential debates, even though Baier pressed Democratic National Committee chairwoman Debbie Wasserman Schultz on the idea in a recent interview.