The Blues won the trophy for the fourth time in our history with a 4-0 victory over Leeds United at the Etihad Stadium in May.
City beat Watford, West Ham, Reading, Tottenham and Bristol City on the way to the final as we lifted the trophy we also won in 1986, 2008 and 2020.
Oliver Reiss‘s side currently sit second in the Premier League Under-18 North table on the back of an unbeaten run which stretches back seven games.
Meanwhile, Palace are 10th in Premier League Under-18 South with two wins from nine matches and four draws.
All ties are scheduled to be completed by Saturday, 14 December. A date and kick-off time will be confirmed as soon as possible so stay close to mancity.com for full fixture details.
Third round draw
Watford v Oxford United
Millwall v Hull City
Leyton Orient or Whitehawk v AFC Fylde or Northampton
Hertford Town or Bristol Rovers v Arsenal
Bournemouth v Ipswich Town
Harrogate Town or Birmingham City v West Brom
QPR v Gillingham or Swindon Town
Derby County v Sunderland
Burton Albion or Notts County v Fulham
Leicester City v Chelsea
Stoke City v Bromley or Rising Ballers Kensington
Cardiff City v Chesterfield or Shrewsbury Town
Bristol City v Sheffield Wednesday
Portsmouth v Leeds United
Eastleigh or AFC Wimbledon v Wolves
Tottenham Hotspur v Middlesbrough
Norwich City v Brentford
Fleetwood Town or Tamworth v Burnley
Aston Villa v Accrington Stanley or Blyth Spartans
Sheffield United v Blackburn Rovers
Merstham or Forest Green Rovers v Burgess Hill Town or Colchester United
Luton Town v Crewe Alexandra or Blackpool
Grimsby Town or Salford City v West Ham United
Everton v Nottingham Forest
Preston North End v Liverpool
Manchester United v Coventry City
Swansea City v Southampton
Stevenage or Cheltenham Town v Exeter City or AFC Dunstable
Manchester City v Crystal Palace
Bolton Wanderers or Lincoln City v Wrexham
Carlisle United v Plymouth Argyle
Newcastle United v Brighton
