A tricky away tie at the King Power Stadium is the reward for City's 2-0 extra-time victory over Newcastle.
Championship outfit Leicester City stand in the way of the Capital One Cup semi-finals.
It's a draw that could be seen as a good omen for the Sky Blues as they beat the same opposition on the way to their FA Cup triumph in 2011.
City needed two bites of the cherry to see them off on that occasion after drawing 2-2 away at Leicester in the third round before beating them 4-2 at the Etihad Stadium in the replay to make it through on the road to Wembley.
Goals from Edin Dzeko, Patrick Vieira, Adam Johnson and Aleksandar Kolarov won the day on 18 January 2011.
Last time City met Leicester in the League Cup was in 1968 when City won 4-0 - one of two meetings the teams have had in the competition.
Nigel Pearson's side are currently in second place in the Championship after a great start to the season and are through to the fifth round after upsetting Fulham 4-3 on Tuesday night.
The tie will be played on Tuesday 17 December at the King Power Stadium, kick off 7.45pm.