After beating Hull City 3-1 in their opening round, the reward for Eric Kinder's side is an away match against League Two side Exeter City.
The Grecians have impressed in the competition so far this season, having already defeated Torquay United, Crystal Palace and last time out a magnificent win over Southampton to progress to the 2nd round.
A date for the tie hasn't yet been finalised but will be announced once confirmed.
The last 16 draw:
Cardiff City or Chelsea v Bristol City or West Ham United
Exeter City v Blackburn Rovers
Newcastle United v Leicester City
Everton v Wolverhampton Wanderers
Reading v Watford
Burnley v Bolton Wanderers
Fulham v Arsenal
Manchester City v West Bromwich Albion