Coca-Cola League One side Crewe have been rewarded for beating Wigan last week with a home tie against Manchester United in the third round of the Carling Cup.
Dario Gradi's side beat Premiership visitors Wigan 2-0 to progress in midweek and have been handed a money-spinning clash with the Red Devils.
Martin O'Neill will return to Leicester for the first time after the Irishman's current club, Aston Villa, were handed in a midlands derby at the Walkers Stadium.
Managerless West Brom will welcome Arsenal to The Hawthorns having overcome Cheltenham last week.
Giantkillers Wycombe and Doncaster, who beat Fulham and Derby respectively in the second round, were unluckily drawn together.
All-Premiership ties include Newcastle against Portsmouth, Liverpool versus Reading and Blackburn against champions Chelsea.
Tottenham face a trip to face MK Dons while Chesterfield, conquerors of Manchester City, host West Ham.
Luton manager Mike Newell returns to former club Everton when the sides meet at Goodison Park next month.
Ties will be played the week commencing October 23.
Carling Cup third-round draw:
• Wycombe v Doncaster
• Sheffield United v Birmingham
• Leicester v Aston Villa
• Watford v Hullg
• Leeds v Southend
• Chesterfield v West Ham
• Notts County v Southampton
• Newcastle v Portsmouth
• Charlton v Bolton
• Liverpool v Reading
• West Brom v Arsenal
• Port Vale v Norwich
• Everton v Luton
• MK Dons v Tottenham
• Crewe v Manchester United
• Blackburn v Chelsea
• Matches to be played week beginning October 23