A Man City under-21 side, managed by Simon Davies, will compete in the competition for the first time after the Club accepted an invitation to take part in the revamped format.
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City will play all their games away from home, which is part of the agreed regulations for the Category One academy sides competing in the competition, and are one of 16 Category One academy teams taking part, a list that also includes fellow Champions League sides Tottenham and Chelsea.
Coventry won the trophy last season, beating Oxford in the final at Wembley in front of 74,434 fans.
The full Northern section group stage draw is as follows:
Group A: Carlisle, Fleetwood, Morecambe, Leicester City
Group B: Accrington, Blackpool, Wigan, Middlesbrough
Group C: Blackburn, Bury, Rochdale, Stoke
Group D: Crewe, Oldham, Port Vale, Newcastle
Group E: Coventry, Shrewsbury, Walsall, West Brom
Group F: Bradford, Chesterfield, Rotherham, MANCHESTER CITY
Group G: Lincoln, Mansfield, Notts County, Everton
Group H: Doncaster, Grimsby, Scunthorpe, Sunderland
Fixture dates TBC.