The Blues will travel to Anfield for the first leg on either 4 April, with the return leg a week later at the Etihad on 10 April and will mark the first meeting between the two clubs in European competition.
City’s record against the Merseysiders is somewhat mixed over recent years, and has been reflected with this season's results.
Pep's side sealed a comfortable 5-0 victory at the Etihad back in September against Jurgen Klopp's men, but we suffered a hard-fought 4-3 defeat away at Anfield.
Below we have resurfaced the highlights of some of our successful meetings against Liverpool...
3-1: Premier League, August 2014
City came out on top in this meeting back at the beginning of the 2014/15 campaign thanks to a Steven Jovetic brace and another from Sergio Aguero.
Pablo Zabaleta netted an own goal during this clash at the Etihad.
Watch the highlights...
League Cup Final, February 2016
It ended level after extra time at Wembley owing to second half goals from Fernandinho and Philippe Coutinho which launched the final into penalties.
'Keeper Willy Caballero produced a stunning hat-trick of saves as City won a dramatic penalty shoot-out to lift the Capital One Cup.
Relive our 2016 Cup final win...
1-1: Premier League, March 2017
Last season, we secured a point from our meeting with the Reds at the Etihad.
It looked as though former Blue, James Milner, had sealed it for the visitors after scoring from the penalty spot, but Aguero was on-hand to take us level in the 69th minute of the game.
Remember the game? Give it a watch...
5-0: Premier League, September 2017
Our first top flight game against Liverpool this season was a cracker - with five goals from three goalscorers.
Sergio kicked-off the proceedings with a goal in the 24th minute, while Gabriel Jesus and Leroy Sane followed with two goals each.
Our trip to Anfield wasn't as successful, as we narrowly missed out on a point due to a 4-3 loss.