City’s Under 21s moved through to the last eight after beating Rochdale 4-2 at the Crown Oil Arena where the Blues fought back from 2-0 down.
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.
Portsmouth v Peterborough
Bristol Rovers v Port Vale
Sunderland v Manchester City U21s
Bury v Oxford United