Nick Cushing’s side will travel to the Sheffield Olympic Legacy Stadium to face the high-flying FA Women’s Championship outfit on 15/16 January 2020.
City will be hoping to retain the trophy they have won three times since 2014, having finished second in Group C to reach the last eight.
The Blades, who are currently second in the Championship, won three of their five games to top a Group A containing FA WSL side, Liverpool.
City met Sheffield United in last season's Continental Cup, beating the Yorkshire side 6-0 in a group stage encounter at the Academy Stadium.
And we went on to lift the Cup against Arsenal in the final which was staged at Bramall Lane, home to Sheffield United's men's side.
A date, kick-off time and ticket information will be announced in due course.