Liverpool face a trip to League One side MK Dons, while Tottenham will take on Colchester United and Manchester United host Rochdale.
Arsenal will play Nottingham Forest at the Emirates, and Chelsea will clash with the winner of Grimsby vs Macclesfield, which will be played on August 29.
Third-round draw:
Wolves vs Reading
Oxford vs West Ham
Watford vs Swansea
Brighton vs Aston Villa
Sheffield United vs Sunderland
Colchester United vs Tottenham
Portsmouth vs Southampton
Burton Albion vs Bournemouth
Preston North End vs Manchester City
MK Dons vs Liverpool
Manchester United vs Rochdale
Luton vs Leicester City
Chelsea vs Grimsby or Macclesfield
Sheffield Wednesday vs Everton
Arsenal vs Nottingham Forest
Crawley Town vs Stoke City
