Brian Barry-Murphy’s young charges will take on three EFL clubs in the group stage of the draw.
Our opponents are newly-promoted League 2 side Chesterfield, fellow League 2 side Grimsby Town and League One’s Lincoln City.
City are one of 16 Category One Academy clubs joining League One and League Two clubs in the new campaign’s tournament.
The 16 U21 Premier League sides join 48 EFL clubs in regional groups and the competition is seen as giving younger players game-time against experienced senior sides outside the top flight.
The top two sides will progress from each group into a knockout phase, which remains regionalised until the quarter-final stage.
Up until the semi-finals, any drawn games will be settled by penalty kicks and no extra time will be played.
City U21s faced Grimsby Town at the same stage last season, drawing 2-2 at Blundell Park before triumphing 4-2 on penalties.
Defeats to Barnsley and Bradford City ended our interest in the competition, won by Peterborough United at Wembley last April.
All Premier League U21 teams will play their matches away from home.
Northern group stage
Group A: Stockport, Tranmere, Accrington, Everton U21
Group B: Wolve U21, Salford Wrexham, Port Vale
Group C: Carlisle, Wigan, Morecambe, Nottingham, Forest U21
Group D: Barrow, Bolton, Fleetwood, Aston Villa U21
Group E: Blackpool, Crewe, Harrogate, Liverpool U21
Group F: Barnsley Doncaster Huddersfield Town, Man United U21
Group G: Chesterfield, Grimsby Town, Lincoln City, Manchester City U21
Group H: Bradford, Mansfield, Rotherham, Newcastle U21
Southern Group Stage
Group A
Birmingham City
Shrewsbury Town
Walsall
Fulham U21
Group B
Wimbledon
Crawley
Wycombe
Brighton U21
Group C
Bromley
Cambridge United
Charlton Athletic
Chelsea U21
Group D
Gillingham
Peterborough United
Stevenage
Palace
Group F
Burton Albion
Northampton Town
Notts County
Leicester City U21
Group E
Colchester United
Leyton Orient
MK Dons
Arsenal U21
Group G
Bristol Rovers
Exeter City
Swindon Town
Spurs U21
Group H
Cheltenham Town
Newport County
Reading
West Ham United U21
Fixture dates for all matches will be published in due course.