Merseyside derby pick of the FA Cup 3rd round

London - Liverpool will host city rivals Everton for the second time inside a month when they face-off in the third round of the FA Cup in early January after the draw was made on Monday.

Liverpool - who beat Everton in the 2012 semi-final, their last FA Cup meeting - also host their struggling neighbours in the Premier League next Sunday.

Everton have had a torrid time in the Premier League so far this season and failed to progress to the knockout stages in the Europa League, although they have the survival specialist Sam Allardyce now installed as manager.

Elsewhere, holders Arsenal's first challenge is an away trip to second tier Nottingham Forest while Premier League leaders Manchester City face a potentially tricky home tie with Burnley.

Arsenal are not the only Premier League giant to face second tier opposition with Manchester United at home to Derby County and last season's beaten finalists Chelsea away at Norwich.

Several Premier League sides could fall prey to giant killing exploits.

Inconsistent Southampton travel to Fulham, and struggling West Ham and Swansea are away at third tier highflyers Shrewsbury and Championship leaders Wolverhampton Wanderers respectively.

Draw (Ties to be played January 5-7)

Ipswich v Sheffield United

Watford v Bristol City

Birmingham v Burton

Liverpool v Everton

Brighton v Crystal Palace

Aston Villa v Woking or Peterborough

Bournemouth v AFC Fylde or Wigan

Coventry v Stoke

Newport v Leeds

Bolton v Huddersfield

Port Vale or Yeovil v Bradford