First leg of the all-English tie will take place at Anfield with the second leg at the Etihad Stadium.
Manchester City face Liverpool in Champions League as Real Madrid set for 2017 final rematch with Juventus and Barcelona take on Roma
The two remaining English sides left in the Uefa Champions League have been drawn together in the quarter-final draw as Manchester City will face Liverpool.
Manchester City are 16 points clear at the top of the Premier League, but Jurgen Klopp's Liverpool are the only side to have beaten them in the league this season, having won 4-3 at Anfield in January.
The quarter-final draw
Barcelona v Roma
Sevilla v Bayern Munich
Juventus v Real Madrid
Liverpool v Manchester City
Elsewhere, Real Madrid will face Juventus, the side they beat to win the trophy in the 2017 final, for a place in the semi-finals as they seek to be the first side since Bayern Munich between 1974-76 to win the tournament in three successive years.
Bayern, bidding to win the tournament for the first time since 2013 travel to Sevilla, while Primera Liga leaders Barcelona will have home advantage first when they go up against Serie A side Roma.
The first legs of the ties will be played over April 3/4, with the second legs on April 10/11.
The semi-finals will take place between April 24/25 and May 1/2 with the final taking place at the NSC Olimpiyskiy Stadium in Kiev on May 26.