Pep Guardiola’s side are looking to win the competition for the fifth time in seven seasons.
Preston currently sit sixth in the Championship having taken nine points from their opening five league games.
Ties will be played the week commencing Monday 23 September, with two matches set to be selected for live coverage on Sky Sports.
TICKETS | City v United | Kids go free!
WATCH | Fight 'til the end: Part One
Full ticket information will follow on mancity.com in the coming days.
Full Third Round draw
Wolves v Reading
Oxford United v West Ham United
Watford v Swansea
Brighton v Aston Villa
Sheffield United v Sunderland
Colchester United v Tottenham
Portsmouth v Southampton
Burton Albion v Bournemouth
Preston North End v Manchester City
MK Dons v Liverpool
Manchester United v Rochdale
Luton v Leicester
Chelsea v Grimsby/Macclesfield
Sheffield Wednesday v Everton
Arsenal v Nottingham Forest
Crawley v Stoke City
Ahead of the 2018/19 competition, EFL clubs voted on a number of rule changes for the competition.
No extra time
Aside from the final - which will have a total of 30 minutes extra time if required - all fixtures will go straight to penalties if they result in a draw after 90 minutes. This means that the traditional away goal rule has been abolished.
The EFL says removing an additional 30 minutes will “directly address any additional fatigue issues,” because sides also have to play a league fixture in the same week.
Seeding was removed from the initial two rounds of the Carabao Cup.
Five bookings in all domestic competitions used to result in a one-match ban. Now, the ruling has been amended to exclude League Cup cautions, which will only be relevant to that competition.