The tie is a repeat of City's F.A Cup with Budweiser Third Round match against the Hornets last January.
City earned their place in the draw by defeating League 1 Notts County after extra time at Meadow Lane last Saturday.
The tie is scheduled to take place the week commencing 27th August 2012. The most likely date for the match at present is Tuesday 28 August.
Tickets details for this tie will be announced in due course.