Jürgen Klopp’s side will take on the fellow Premier League club over two legs next month, having progressed to the last eight with a 5-0 aggregate victory over FC Porto.
The first leg of the tie will take place at Anfield on Wednesday April 4, with the return meeting at Etihad Stadium on Tuesday April 10. Click here to view an updated fixture list.
The teams have met twice already this season in league football, each winning on home soil, with the Reds 4-3 victors over Pep Guardiola’s men in January.
Elsewhere in the draw, FC Barcelona will face AS Roma, Sevilla take on Bayern Munich, and Juventus meet Real Madrid.
“I’ve said it before and it’s still the truth, it’s always common in a draw that you’ll get your neighbour, more or less, but to be honest I don’t mind, really.
“It is exactly like it was before – we take what we’ve got. Now it’s Manchester City, let’s go.
“We’ve lost once and we’ve won once against them in the league – and I don’t think they thought before the best draw they could have got is Liverpool. That’s a sign for us and how strong we can be.
“We are for sure not the favourites in this round, but in the last eight there are not a lot of favourites – maybe two of them, Bayern and Barcelona – but thank God it’s football and nothing is decided.
“We have a few games to play until then, but I am really looking forward to it and we will give it everything.”
Just six days separate the two legs, and Klopp doesn’t feel hosting the first game will make too much difference to the final outcome of the tie. He said:
“In this case, it’s not too important. For us, it’s completely normal. We can get a result at home for sure, but it’s obviously a difficult game – but good news for both teams.
“It is like it should be in the last eight. It was clear we would face a strong team. Now we have Man City. The good thing is they are the team we know most about. It’s not too cool for England because now only one team can go to the semis. But we will try everything.”