Former world champion relishes the Sheffield v Leeds boxing derby: Josh Warrington v Kid Galahad
Woods said fight fans have been short-changed too often in the past as champions have opted to avoid 'mandatory' challengers in search of easier or better-paid contests.
But Sheffield's Galahad, who was mandatory for the Leeds man's IBF featherweight title, is now in a great position to take his belt, after Frank Warren won the purse bid for the contest.
The fight will take place in Leeds, probably in April.
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Hide AdThere had been speculation that Warrington was lining up for a unification bout against one of the division's other belt holders, but a battle of Yorkshire is now just weeks away.
On social media, Galahad posted: "Respect to Josh for taking the fight."
And Woods said: "It seems pretty rare these days that the sport does what it is supposed to do and deliver a fight between a challenger and his number one contender.
"My first defence (Julio Cesar Gonzalez; 2005) was against the number one challenger because I followed the rules and it is great to see Warrington doing the same. He wants to fight the best, like I did.
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Hide Ad"Ricky Hatton never wanted to fight Junior Witter, when that fight was there to be had. So he didn’t.
"This is going to be an interesting fight because it is too close to call, in my opinion.
"Josh has a phenomenal work rate and a great fan base, and I was surprised how well he did against Lee Selby (split decision win in May last year, before going on to beat Carl Frampton in December.)
"But Galahad is an Ingle fighter, elusive, deceptive, fast and fresh.
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Hide Ad"Maybe Warrington reserves his best for the top fighters - but Galahad is a different style...that's why it's too close to call."
Galahad, 28, who has been sparring with Selby, has a 26-fight winning record, Warrington has 28 wins on his cv.
He is predicting that he will stop the West Yorkshireman in the sixth or seventh round.
*Meanwhile, Kell Brook fans are awaiting news on his next fight.
Jessie Vargas says he has agreed terms and is awaiting confirmation.
Meanwhile Adrien Broner says he'd like to campaign in the UK against an oppoent of Brook’s standing.