The Premier League's top two from last season will clash just days after the climax of the 2022 World Cup at the end of December. City won four consecutive League Cup titles before Liverpool beat Chelsea on penalties to claim the trophy last season.
Liverpool have struggled domestically this season, needing a penalty shootout to dispose of second-tier Derby County on Wednesday after they were held to a 0-0 draw at Anfield.
City were made to work hard for their third-round victory over Chelsea.
City's only defeat in all competitions this season was against Liverpool, however, with Mohamed Salah's late strike giving them a 1-0 Premier League win last month.
The matches will be played the week commencing Dec. 19. The World Cup final will take place in Qatar on Dec. 18.
Full Carabao Cup 4th round draw:
Wolves vs. Gillingham
Southampton vs. Lincoln City
Blackburn Rovers vs. Nottingham Forest
Newcastle United vs. Bournemouth
Manchester City vs. Liverpool
Manchester United vs. Burnley
MK Dons vs. Leicester City
Charlton Athletic vs. Brighton
Information from Reuters was used in this report.