City reached the last 32 after a 4-0 win over Chelsea, thanks to first half goals from Riyad Mahrez, Julian Alvarez, Phil Foden and a second half Mahrez penalty that completed the scoring.
The reward for the victory is a home tie with Premier League leaders Arsenal.
The draw took place live on BBC One ahead of our clash with Chelsea, with ex-England international Emile Heskey and former City and England ‘keeper Karen Bardsley picking out the numbers.
City most recently lifted the famous trophy in 2019 and have been semi-finalists for the past three seasons.
The ties will be played over the weekend of 28/29 January. Keep across mancity.com and the official Man City app for information surrounding the fixture.
Selected matches will be shown both on BBC and ITV Sport, with TV selections to be confirmed in due course.
Full draw
Ipswich Town v Burnley
Wrexham v Sheffield United
Southampton v Blackpool
Preston North End v Tottenham Hotspur
Manchester United v Reading
Luton or Wigan Athletic v Grimsby Town
Derby County v West Ham United
Stoke City v Stevenage
Blackburn Rovers v Forest Green Rovers or Birmingham City
Walsall v Leicester City
Sheffield Wednesday v Fleetwood Town
Manchester City v Arsenal
Bristol City or Swansea City v Chesterfield or West Brom
Brighton & Hove Albion v Liverpool or Wolves
Fulham v Sunderland
Boreham Wood or Accrington Stanley v Cardiff City or Leeds United