Does “wager of battle” here refer to “combat” and “challenge”? Does it mean “a single combat”?

Does “wager of battle” here refer to “combat” and “challenge”? Does it mean “a single combat”?

“This is a fell warrior, I warrant you, wherever the rebels have got him from. He is (in your Lordship’s private ear) a kinglier man than ever Miraz was. And what mail he wears! None of our smiths can make the like.”
“I’ll wager my dappled Pomely he brings a challenge, not a surrender,” said Glozelle.
“How then?” said Sopespian. “We hold the enemy in our fist here. Miraz
would never be so hair-brained as to throw away his advantage on a combat.”
“He might be brought to it,” said Glozelle in a much lower voice.
“Softly,” said Sopespian. “Step a little aside here out of earshot of those sentries. Now. Have I taken your Lordship’s meaning aright?”
“If the King undertook wager of battle,” whispered Glozelle, “why, either he would kill or be killed.”

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