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City’s Under 21s booked our place in the last eight after beating Rochdale 4-2 in Tuesday’s last 16 clash at the Crown Oil Arena where the Blues fought back from 2-0 down.
In the previous knockout round of 32, City secured a 5-3 win on penalties at Barnsley after the teams had drawn 3-3 over 90 minutes.
Now Paul Harsley's side face a trip to the Stadium of Light to take on the League One high-fliers.
Sunderland secured their place in the quarter-finals thanks to a 4-0 win over Newcastle Under-21s.
The Blues started as one of 16 Under-21 teams competing in the 2018/19 instalment of the competition, with EDS boss Harsley overseeing the squad.
Checkatrade Trophy last eight games must be played in the week commencing January 21.
The exact date and time of the quarter-final tie will be confirmed in the coming days.
Portsmouth v Peterborough
Bristol Rovers v Port Vale
Sunderland v Manchester City U21s
Bury v Oxford United
Under-21s striker Luke Bolton looks ahead to the prospect of City's Checkatrade Trophy quarter-final
Manchester City EDS manager Paul Harsley gives his verdict on dramatic Checkatrade Trophy victory away at Rochdale