Manchester City ended their 35-year wait for a trophy last season when they won the FA Cup
Arch rivals Manchester City and Manchester United will face each other in the tie of the FA Cup third round, reports the BBC.
United will make the trip to Etihad Stadium looking to avenge October's 6-1 drubbing at the hands of City.
Elsewhere, Arsenal meet Leeds, Bristol Rovers will host Aston Villa while in-form Tottenham face Cheltenham Town.
Non-league Tamworth travel to Everton, Wrexham face Brighton and Fleetwood will play Blackpool if they beat Yeovil in a replay.
The clash of Manchester giants City and 11-time FA Cup winners United is the stand out tie of the draw - with the teams sitting first and second, respectively in the Premier League table.
The Manchester neighbours met in the FA Cup semi-finals last season at Wembley with Roberto Mancini's side winning 1-0 before they went on to reach their first final in 30 years and triumphed 1-0 against Stoke.
The tie was one of only two all-Premier League affairs to emerge from Sunday's draw, with Newcastle hosting Blackburn in the other.
Chelsea manager, Andre Villa-Boas' first taste of the FA Cup will come at home to Championship side Portsmouth, who won the FA Cup in 2008, beating Cardiff in the final.
Last year's runners-up, Stoke City, will travel to League Two Gillingham, while Neil Warnock's QPR face a tricky-looking visit to MK Dons who are pushing for a promotion to the Championship next season.
Blue Square Bet Premier Tamworth will be happy with a lucrative trip to Premier League Everton while Wrexham's reward for a stunning 1-0 win at League One Brentford is a tie against Brighton & Hove Albion.
Nottingham Forest will host Leicester in an east Midlands derby and there is definitely one all-London tie after Fulham and Charlton were paired together.