The tie against the Championship side will be played at Etihad Stadium over the weekend of the 8/11 January.
The draw took place on BBC One’s The One Show with former Wales international Robbie Savage drawing the balls.
City have met the Midlands side on eight previous occasions in the Cup with the most famous meeting our clash in the 1956 FA Cup final which saw us triumph 3-1 at Wembley.
Our most recent Cup meeting was in 2001 at Maine Road when we emerged 3-2 victors.
Selected matches will be shown on BBC and BT Sport, with selections confirmed at some stage in December.
FULL DRAW
Huddersfield v Plymouth
Southampton v Shrewsbury
Chorley v Derby County
Marine v Tottenham Hotspur
Wolves v Crystal Palace
Stockport County v West Ham
Oldham Athletic v AFC Bournemouth
Manchester United v Watford
Stevenage v Swansea City
Everton v Rotherham
Nottingham Forest v Cardiff
Arsenal v Newcastle
Barnsley v Tranmere Rovers
Bristol Rovers v Sheffield United
Canvey Island or Boreham Wood v Millwall
Blackburn Rovers v Doncaster Rovers
Stoke City v Leicester City
Wycombe Wanderers v Preston North End
Crawley Town v Leeds United
Burnley v MK Dons
Bristol City v Portsmouth
QPR v Fulham
Aston Villa v Liverpool
Brentford v Middlesbrough
Manchester City v Birmingham City
Luton Town v Reading
Chelsea v Morecambe
Exeter City v Sheff Wed
Norwich City v Coventry City
Blackpool v West Brom
Newport County v Brighton
Cheltenham Town v Mansfield Town