The Carabao Cup fourth round draw took place on Wednesday night after the conclusion of the third round ties.
The draw will see Liverpool face North London giants Arsenal, while Chelsea will face top four rivals Manchester United.
Liverpool booked their place in the fourth round of the Carabao Cup via a 2-0 win at home to English League One opposition MK Dons on Wednesday night.
On Tuesday night, Arsenal booked their place in the fourth round with the 5-0 win over second tier team Nottingham Forest courtesy goals from Gabriel Martinelli (2), Reiss Nelson, Rob Holding and Joe Willock.
Liverpool will host Arsenal in one of eight Carabao Cup fourth round ties scheduled for the last week of October.
In another blockbuster Carabao Cup fourth round clash, Chelsea will host Manchester United after the two teams won their respective third round ties.
Holders Manchester City are targeting a hattrick of Carabao Cup titles and they have been drawn with fellow Premier League team Southampton in the fourth round.
Fourth Round Ties:
Manchester City vs Southampton
Liverpool vs Arsenal
Chelsea vs Manchester United
Aston Villa vs Wolves
Everton vs Watford
Crawley Town vs Colchester United
Burton Albion vs Leicester City
Oxford United vs Sunderland