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The Blues are one of 16 invited teams who join the 48 clubs that make up League One and League Two.
All invited clubs must field an Under-21 side in games, though two players over 21 will be allowed to play provided they have made more than 40 senior appearances.
City will face last year’s beaten finalists Shrewsbury Town, Tranmere Rovers and Crewe Alexandra in Group D.
The draw is split into a northern and southern section for the group stages.
Arsenal, Chelsea, Newcastle United, Wolves, Tottenham, West Ham, Southampton, Fulham and Brighton are among the Premier League clubs also involved.
Dates for the games will be released in due course.
Interview with new Elite Development Squad coach Paul Harsley
Harsley joins the Blues from Barnsley where he has a similar role and was briefly the Tykes’ caretaker manager earlier this year.
Nmecha has been nominated for the PL2 Player of the Season award